Showing his concern about the digital currency regulations that have been suggested by the New York Department of Financial Services or NYDFS. Texas Republican Congressman Steve Stockman has stated that any regulation could hurt the Bitcoin ecosystem considerably. According to him, the damage will be suffered to the highest extent by startups.
Illustrating his opinion about the proposed NYDFS regulations, he said that these are banker-friendly, growth-harming frameworks that fail to recognize Bitcoin’s unique characteristics and ability to jumpstart a new era of digital commerce and value exchange. He echoed statements made by former US Mint director Ed Moy.
Talking about regulation, Stockman admitted that the Bitcoin sector itself should be the source of regulation rather than agencies that don’t fully understand digital currency. He cited the example of the US healthcare system which according to him is not working correctly as a result of government intervention.
Explaining the sad state of affairs in the healthcare sector in the US, Stockman said that many doctors are dropping out of the profession because it’s over regulated and what may happen to the Bitcoin community is that, if there’s so much regulation, there will be a lot of people who would leave it instantly.
He did not just cite the example of overregulation of healthcare in the US, but also addressed the outcome of the proposed regulation, and who is likely to benefit from them. According to him, the clear winners (should the NYDFS proposal pass in its current state) would be the banks who face competition from Bitcoin’s underlying technology.
Double Standards for Bitcoin and Fiat
In fact, Stockman went on to say that not only would the regulations make it tough for Bitcoin businesses to get off the ground in the first place, but according to him, it will make it difficult for them to compete as an alternative to traditional banking and payment systems. Currently, Bitcoin is a major challenge for the existing currency system; however, with the regulation, it won’t be so.
He said that the regulation, from the standpoint of the banks, is a banker’s dream come true, and it’s basically putting a hedge around the banks, protecting them from any potential harm.
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