The US Home of Representatives Power and Commerce Committee’s Subcommittee on Innovation, Knowledge and Commerce gathered to debate blockchain technology and the way forward for Web3 on June 7. Crypto business members, together with Polygon Labs president Ryan Wyatt and a number of other authorized specialists, appeared earlier than the committee to have interaction in what transpired to be a constructive dialogue.
This assembly was held simply after the SEC announced back-to-back lawsuits towards main crypto exchanges Binance and Coinbase. In Wyatt’s testimony, he discussed the potential of blockchain expertise and its worth to customers, and the advantages of constructing a wholesome and well-regulated blockchain ecosystem in the USA.
Wyatt started by addressing the elemental drawback blockchains remedy — the “worth extraction” drawback on the web. He defined that within the present period of the web — generally referred to as “Web2” — massive centralized tech corporations extract worth from customers by charging charges for items and companies and accumulating person knowledge for his or her profit.
In the present day, I had the privilege of testifying on the Innovation, Knowledge & Commerce subcommittee at a Congressional listening to centered on educating lawmakers on why this tech is necessary to all of us, and the way it adjustments the worth paradigm of the Web.
We’re on this collectively. pic.twitter.com/l8OcDM12hB
— Ryan Wyatt (@Fwiz) June 7, 2023
In response to Wyatt, blockchains remedy this drawback by democratizing the web and creating Web3, which is predicated on decentralized and clear methods. Blockchains use cryptography and a community of computer systems to safe and preserve data, eliminating the necessity for a centralized authority. On this Web3 mannequin, customers can management their knowledge and select when, how, and whether or not to share it with functions and companies.
Relating to how the U.S. authorities may associate with the business to advance modernization, Wyatt talked about that the present regulatory surroundings is a major barrier. By fostering a well-regulated blockchain ecosystem, Polygon Labs exec mentioned the U.S. may preserve its aggressive edge and make sure the expertise business thrives domestically:
“When regulation doesn’t meet novel expertise the place it’s, the U.S. loses its aggressive edge over different nations.“
Lastly, Wyatt argued that constructing a blockchain expertise ecosystem in the USA is useful for Individuals. It might probably drive financial progress and create jobs, each within the expertise sector and non-technical sectors. It additionally permits for higher shopper safety by leveraging the transparency of blockchains and aligning regulation with novel applied sciences.
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Wyatt’s testimony supplies a number of examples of Web3 functions and use circumstances, akin to blockchain-based shopper loyalty packages, non-fungible tokens (NFTs) within the vogue business, blockchain-based neighborhood organizations and blockchain options for provide chain administration within the U.S. Air Power and the Division of Protection.
The listening to comes on the heels of a separate Home listening to Tuesday, the place the Agriculture Committee grilled exchange executives and former regulators on compliance and shopper safety. It additionally marks the primary time lawmakers have hosted a crypto listening to that addressed non-financial use circumstances
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