Texas Senator Says Bitcoin is Generating Benefits For Texas and US; Warns Against Overregulation.
US Senator Ted Cruz recently noted that bitcoin (BTC) is generating enormous benefits for Texas and the US, as he shared his concerns about overregulation amidst the FTX saga.
Rafael “Ted” Cruz, a US senator from Texas and notable bitcoin advocate, recently mentioned that bitcoin is generating tremendous benefits for Texas and the United States, expressing his concerns regarding the overregulation of the cryptocurrency industry following the FTX implosion.
Cruz made these remarks in an interview with a CNBC correspondent at the Texas Blockchain Summit of 2022. According to Cruz, BTC is presenting the US and Texas with massive benefits, which would be dwarfed if the US Congress impedes the industry’s growth through overregulation as it attempts to reduce risks of a similar event to the FTX collapse.
U.S. senator Ted Cruz: The #Bitcoin industry "is generating enormous benefits for Texas, for the country" ?? pic.twitter.com/2P6rHWOfiT
— Bitcoin Magazine (@BitcoinMagazine) November 22, 2022
Cruz said the FTX debacle was likely triggered by “criminal conduct,” and there will be investigations into the matter. He noted that all guilty parties involved in the company’s collapse should be made to face the law if the investigations uncover any criminal conduct.
“I think it’s a mistake, though, to take the conduct of individuals engaged in fraud and use that as an excuse to overregulate an industry that is generating enormous benefits for Texas, for the country,” Cruz remarked, highlighting his concerns of overregulation as a response from the Congress.
The 51-year-old attorney mentioned that he is concerned that Congress would regulate the industry amiss because most of its members are not as educated regarding cryptocurrencies. “I’m not sure we have five senators that could tell you what the hell a BTC is,” Cruz added.
U.S. senator Ted Cruz on #Bitcoin regulation: "I have real concern when it comes to congress."
"I serve in the U.S. senate, a body where I'm not sure we have 5 senators that can tell you what the hell a Bitcoin is." pic.twitter.com/nkwyIIXHGd
— Bitcoin Magazine (@BitcoinMagazine) November 22, 2022
He pointed out the dangers of having Congress jump to regulate the industry when they don’t fully understand it. Consequently, he advised that members of the governing body should rather spend their time getting an education on the cryptocurrency industry and getting expert input.
“Of course, there needs to be reasonable regulation protecting investors. But overregulating can do massive damage, and, I hope, the misconduct of one company doesn’t damage the entire industry,” Cruz concluded.
Recall that the US House Committee on Financial Services previously revealed that it would be holding a hearing on the FTX implosion in December to ascertain the root cause of the fiasco that led to investor losses.
Bitcoin Bringing an Economic Boost to Texas and the US
While the FTX fiasco has once again underscored the need for the proper regulation of the crypto industry, some pundits are concerned about improper regulatory moves, as that would stunt the industry’s growth and erode the benefits cryptocurrencies bring to the economy.
Despite a deficiency in regulatory efforts, the US has been at the forefront of cryptocurrency adoption. Texas, holding the torch as the most crypto-friendly state in the country, is home to several bitcoin miners and mining entities.
Last month, a local Texas media outlet highlighted the “economic boost” the burgeoning bitcoin mining industry was brought to Texas, as the state sees a massive influx of cryptocurrency miners and crypto-mining companies.
As a testament to Texas’ friendly attitude to cryptocurrencies, this month, the Texas Work Group on Blockchain Matters released a report highlighting a few potentially beneficial pointers to the cryptocurrency ecosystem, which include tax relief for bitcoin mining, bitcoin tutelage in schools, and having BTC as an authorized investment choice for the Texas government, among others.
On November 1, Grayscale revealed the results of a survey it conducted with Harris Poll on the attitude of Americans towards cryptocurrencies. According to the survey, Democrats and Republicans admit that cryptocurrency is the future of finance in the US.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
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