Patrick McHenry, also known as “Mr Fintech,” believes that the default reaction of regulators and politicians towards cryptocurrency should be permissive.
Speaking on the Unchained podcast, McHenry spoke of how he believed the government should allow innovations like cryptocurrency grow.
“My conclusion was, any action by the government — really up until the last 2, 3 years — would be negative, would impair innovation and would restrict the development of cryptocurrencies and their enormous value, now and in the future.”
McHenry’s view is shared by many in the crypto industry, who believe that regulations like New York’s BitLicense place an undue burden on crypto businesses looking to get started.
McHenry spoke to the danger of allowing government to regulate too freely. Government, after all, is far less flexible than industry. McHenry mentioned that there are regulations dating back to the stock market crash of 1929, intended to regulate financial products that followed.
“We still have regulations on the books that are driven about the innovations of the 30s and 40s, which is using a telephone or telegraph to get information more quickly.”
McHenry spoke of the importance of updating regulations to meet modern demands, saying it’s “not just about the United States anymore.”
One of a few congresspeople who’s shown real enthusiasm for blockchain technology, McHenry would prefer a regulatory framework that stresses support for innovation rather than an onerous process set up to slow down new industry.
McHenry is one of several representatives to support the Token Taxonomy Act, which would provide tax clarity and relief to crypto businesses and individuals using things like Bitcoin.
As blockchain and cryptocurrency become more commonplace issues for voters, we may see a “crypto caucus” emerge of like-minded representatives from both sides of the aisle.
Cryptocurrency is one of the few issues that has been championed both by democrats like Tulsi Gabbard and staunch conservatives like Warren Davidson.
McHenry previously made crypto news headlines by calling the world designed by Satoshi Nakamoto an “unstoppable force.”