With Bitcoin hitting a new all-time high of just under $ 63,000 per unit this week, several members of Congress appear to have different feelings about the world’s leading digital currency by market cap. Kevin McCarthy – the minority leader of the House of Representatives and Republican from California – has reported that he is a fan of Bitcoin and that the US government needs to wake up to enforcing its regulations.
Kevin McCarthy: The US is losing
In a recent interview, he stated:
This is something that those in charge of regulation, those in government, those in politics, understand better what this means for the future as other countries, especially China, make progress. I don’t want America to fall behind. I want the next century to be ours.
The United States has been relatively slow in implementing appropriate Bitcoin regulations and taking the necessary action compared to other regions. For example, the US has not recognized the advantages and disadvantages of a Bitcoin-based Exchange Traded Fund (ETF). As a result, the country has missed the boat when it comes to maintaining a top spot as a financial innovator, and its northern neighbor – Canada – was the first to introduce ETFs based on both BTC and ETH.
In addition, the US has been slow to adopt a national digital currency. At a time when several countries – including allies like Britain – are starting to experiment with this technology, America has not quite stepped on the scene and has lost a potential position to China, which has been experimenting with a digital version of the for some time Yuan. The currency had already undergone several test periods before it was made available to the public.
According to McCarthy, the idea about Bitcoin up to this point was that it was scary or misunderstood in some way. According to McCarthy, men like Mitch McConnell – the former Senate majority leader and Republican from Kentucky – even tried to get rid of the asset before it hit its all-time high in March last year.
The volatility was a problem
Gil Luria – director of research at DA Davidson – says the US has largely moved away from BTC due to its volatility, claiming:
The reason why Bitcoin and other crypto assets fluctuate in price is because there is a world where all businesses, all governments, and all people use Bitcoin as money. You may think that this probability is slim [but] There are other people who think that it is possible and improbable and as long as it is possible. In this case, each Bitcoin would be worth $ 1 million, and it is also possible that Bitcoin will become worthless. When you have a $ 0 or $ 1 million asset, pricing is a process of volatility.