At the crypto hearing held by the US Senate Banking, Housing and Urban Affairs Committee on Tuesday, it also called for stricter supervision of cryptocurrency miners.
Speaking to the committee, Professor Angela Walch claimed that miners have “meaningful power” over how the blockchain network operates.According to Walch, miners can use their transaction ordering function, which may become the “main problem” of cryptocurrencies because Report Through Law360.
In emphasizing this point, Professor Walch likened the miner’s extractable value paradigm (miners somehow make more profits through ordering transactions) to something like “bribery.” Therefore, given the role of miners as “intermediaries” in the multi-billion-dollar crypto ecosystem, Walch called for “stricter scrutiny” of the activities of miners.
Coin Center executive director Jerry Brito refuted Walch’s description of crypto miners as intermediaries, and instead compared their role to that of an Internet service provider. Brito advocates that miners should be treated like ISPs, without the need for cumbersome regulations like the Money Transmission Law.
Brito emphasized that in places like New York, the state’s strict Bitlicense does not include crypto miners because they are not considered “financial intermediaries.”
Volch is not the only one who has cast a glimpse of what appears to be jaundice on crypto miners. Senator Elizabeth Warren uses terms such as “shadow” and “anonymity” to describe software developers and miners.
As the U.S. is recognized as Possible destinations for miners to move out of China Due to the latter Crypto mining crackdown, The crypto mining space in the United States may be subject to stricter scrutiny.
Most regulatory conversations about U.S. miners Has always been about environmental issuess, some North American mining companies have expressed their commitment to environmentally sustainable operations.