Utah Republican senator Mike Lee
outlined
three major regulatory risks to the cryptocurrency industry at the recent Permissionless III crypto conference. They are the creation of a central bank digital currency (CBDC), fragmented state regulations, and heavy federal oversight. He warned these could threaten the digital assets sector, saying, “Cryptocurrency is not a security. Cryptocurrency is not a commodity. Cryptocurrency is used as a medium of exchange.” Lee also argued, “I don’t even think we should tax the capital gain on the transfer of it.”
Congressman John Curtis echoed Lee’s concerns, criticizing government overreach and stating, “Instead of coming after you, we should be your protectors.” Both politicians likened the growing regulation of digital assets to financial surveillance. They also denounced CBDCs, which are being explored by various governments, including China, as potential threats to financial freedom. The U.S. Federal Reserve continues to evaluate the feasibility of a CBDC, while the crypto industry views it as a risk to liberty.
