Here’s the Flimsy Basis for Congress’s Claim that Cryptos Pose a “Systemic Risk” to the Economy

Source: Foundation for Economic Education
by Jon Miltimore

“One will watch the two hours of House testimony — a long two hours — in vain for serious evidence showing cryptocurrencies pose a systemic risk to the economy. (Alexis Goldstein, a policy director at the Open Markets Institute, tries, but her testimony warning against large concentrations in the crypto market—such as Dogecoin—fall well short.) Indeed, the notion that cryptos are not subject to regulatory oversight is false. As Christine Parker, a partner at Reed Smith LLP, pointed out in her testimony, cryptocurrencies are regulated by numerous governing bodies. … There’s simply no compelling evidence to support the idea that cryptocurrencies pose ‘systemic risks’ to the global economy. (The entire crypto market, it should be pointed out, is about $1.6 trillion, smaller than the market caps of several US companies, including Apple, Amazon, and Microsoft.)” (07/06/21)