Blockchain arms race risks being won by ‘hostile nations’ – US crypto lobby group

A blockchain lobbying group backed by companies such as Goldman Sachs, Citigroup, Circle and Fidelity has urged the United States Congress to pass a legal framework for digital assets or risk falling behind other countries.

On May 19, the US Chamber of Digital Commerce sent a call to action to Congress and the Senate to prioritize passing a national approach to crypto regulation.

The organization said it is urging Congress to organize a “Digital Assets and Blockchain Technology Solarium Commission” to develop a “national strategic vision for digital assets and blockchain technology” in the US.

There was a stern warning that failure to act would enable “opponent nations” to pursue activities in space that “threaten US leadership and the primacy of the dollar.”

Excerpt from the Chamber of Digital Commerce call to action –

It cited China as an example of such counterproductive action, with its development of an internationally focused blockchain-based service network (BSN) to “engage global growth and trade and fill a US-created vacuum”.

It also cited a growing number of countries considering or choosing to trade directly with China in the yuan and abandoning the US dollar. These include Saudi Arabia, Russia, France, Brazil and India.

On a similar note, the organization noted other developments regarding a potential BRICS digital currency and gold-backed digital currencies by Russia and Iran.

The brief concluded that regulatory and legal ambiguity in the US “is hindering the country’s ability to lead and benefit from this innovation revolution,” adding:

“This abdication is severely stifling domestic growth and benefiting other countries at the expense of American innovators and investors.”

The name of the proposed commission references Project Solarium which was created in the wake of World War II and the beginning of the Cold War by President Eisenhower to counter the threat of Soviet expansion.

The Cybersecurity Solarium Commission, created in 2019, was created to develop a strategic approach to defend against cyber attacks. The crypto advocacy group wants a similar strategy on digital assets and blockchain technology, which “desperately needs consensus in the light of other countries’ advances.”

Connected: US Chamber of Commerce condemns SEC’s ‘haphazard’ regulation efforts

The Chamber of Digital Commerce is an American advocacy group founded in 2014 that promotes emerging technologies in the blockchain field.

On May 19, the group supported Senator Tom Emmer to introduce the Securities Clarity Act, which aims to provide much needed regulatory clarity for the crypto assets and blockchain industry in the US.

Meanwhile, the Securities and Exchange Commission is adamant that existing rules that were put in place decades ago still apply to this new form of digital finance and its underlying technology.

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