It argues that the crypto-asset industry “in any way suited to solving the financial problems facing ordinary Americans” narrative is “peddled by those with a financial stake” in its success.
Although cryptocurrencies witnessed continuous dramatic crashes, the sector still has a total market value of $1.27 trillion, according to CoinGecko, with Bitcoin — the largest crypto by market cap — accounting for $562 billion in market capitalization.
The signatories write that “not all innovation is unqualifiedly good” and say that “the history of technology is full of dead ends, false starts, and wrong turns.”
They added that blockchains are “poorly suited for just about every purpose currently touted as a present or potential source of public benefit” and call it “a solution in search of a problem.”
They want lawmakers to make sure that people “are not left vulnerable to predatory finance, fraud, and systemic economic risks in the name of technological potential which does not exist,” saying that crypto assets are often used in “unsound and highly volatile speculative investment schemes” that trick retail investors “who may be unable to understand their nature and risk.”
