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Urgent Action Needed: US Crypto Lobby Urges Congress to Pass Digital Asset Legal Framework

Powerhouse players Goldman Sachs, Citi Group, Circle, and Fidelity, via the US Chamber of Digital Commerce, implore Congress to swiftly establish a legal framework for digital assets, cautioning against potential threats to US global leadership and dollar supremacy.

A formidable blockchain lobbying group comprising influential financial institutions such as Goldman Sachs, Citi Group, Circle, and Fidelity has issued a rallying cry to the United States Congress, stressing the critical importance of implementing a legal framework for digital assets. The US Chamber of Digital Commerce warns that failing to act swiftly would risk losing ground to other nations in the evolving blockchain landscape.

In a compelling call to action on May 19, the Chamber urged Congress and the Senate to prioritize the passage of comprehensive crypto regulation at the national level. Emphasizing the urgency of the matter, the organization proposed the establishment of a "Digital Asset and Blockchain Technology Solarium Commission." This commission would be tasked with developing a strategic national approach to digital assets and blockchain technology within the United States.

The Chamber issued a stark warning, cautioning that inaction would allow "adversarial nations" to advance their interests in the blockchain domain, thereby jeopardizing US leadership and the preeminence of the US dollar. Specifically, China was cited as an example, highlighting its development of the internationally focused Blockchain-based Services Network (BSN) as a means to fill the void left by the US.

The brief also drew attention to a growing number of countries, including Saudi Arabia, Russia, France, Brazil, and India, exploring direct trade with China in yuan while distancing themselves from the US dollar. Furthermore, the mention of initiatives such as the potential BRICS digital currency and gold-backed digital currencies by Russia and Iran underlined the need for the US to act swiftly.

The Chamber's statement concluded that the absence of clear regulations in the US was hindering domestic progress and granting advantages to competing nations, ultimately impeding innovation and investment within the country.

The proposed commission's name, referencing Project Solarium, draws inspiration from President Eisenhower's response to the threat of Soviet expansion. In a similar vein, the Cyberspace Solarium Commission was established in 2019 to develop a strategic approach to defending against cyberattacks. The Chamber of Digital Commerce seeks a comparable strategy focused on digital assets and blockchain technology, as consensus is urgently required to counter the advancements made by other nations.

The Chamber of Digital Commerce, founded in 2014, is an influential American advocacy group dedicated to promoting emerging technologies in the blockchain sector. Notably, the group recently expressed its support for Senator Tom Emmer's introduction of the Securities Clarity Act, a measure aimed at providing regulatory clarity for the crypto asset and blockchain industry in the United States.

Despite these calls, the Securities and Exchange Commission (SEC) maintains that the existing rules formulated decades ago still apply to this new realm of digital finance and its underlying technology. The need for updated and tailored regulations becomes increasingly evident as the industry evolves and gains momentum.