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Senate Republican Policy Committee unveil policy paper on crypto: Full insight

Updated: Jul 25, 2024
Published: Apr 9, 2022
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The policy arm of the GOP, the Senate Republican Policy Committee (RPC), which is led by U.S. Sen. Roy Blunt (R-MO), has revealed a policy paper on cryptocurrencies in which the authorities point out the positive and negative aspects of crypto tokens and the technology behind them. The report represents a unified approach to the regulation of cryptocurrencies. 

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Potential benefits of crypto

The paper outlined a number of benefits of crypto tokens giving the example of Ukraine, which was able to raise more than $100 million in cryptocurrency to support its defense against Russia's unprovoked war. It said that if the money was raised via traditional means, a lot of time would be wasted, and regulatory complexities would've gotten involved. 

Furthermore, the paper which has been titled "Cryptocurrency Goes Mainstream" also pointed out that crypto has "increased security and privacy in financial transactions" and also, has been proved to be quite beneficial in "areas or countries where people have less trust in their government or institutions."

It is a notable fact that the fact published in the paper has no novel information regarding cryptocurrencies, but it is important in the sense that the GOP has plans to regulate the crypto market using unified force. 

The dark side of cryptocurrencies

The report also noted the negative aspect of cryptocurrencies and the entire crypto space as well. It noted the success that the FBI and other authorities have had until now in tracking and removing scammers and hackers who use cryptocurrencies to cover their tracks. As the report noted: 
According to Chainalysis, "cryptocurrency-based crime hit a new all-time high in 2021, with illicit addresses receiving $14 billion over the course of the year, up from $7.8 billion in 2020." However, Chainalysis also found that illicit transactions accounted for only 0.15% of total cryptocurrency volume.
Moreover, another disadvantage pointed out by the policy paper was the huge chunk of energy that is consumed during mining cryptocurrencies. Previously, Cryptonary reported that Treasury Secretary Janet L. Yellen called for an "innovative regulation" of cryptocurrencies.

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