US House Republican Member Patrick McHenry Knows Crypto, BTC Trades Below Key $10,000

July 18, 2019 09:00 AM
Bitcoin Futures Back Below Key $10,000 Level
US House Republican Member Patrick McHenry Knows Crypto
Day Two Of Facebook's David Marcus' Grilling By Congress
Crytpo and Bitcoin Futures Story of Day



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Yesterday Was Day Two Of Facebook's David Marcus' Grilling By Congress, This Time By The House Committee On Financial Services - While The Group Was Generally Better Informed On The Topic And Less Politicized Than The Senate, Republican Ranking Member Patrick McHenry Absolutely Stole The Show - McHenry Proved Himself To Be Knowledgeable About The Cryptocurrency Landscape, Libra And The Many Technical And Regulatory Contradictions Within Facebook's Plans - We Expect That McHenry's Voice Will Become An Important One As The Crypto Topic Continues To Gain Focus In DC

McHenry is the current Chief House Deputy Whip and a representative from North Carolina. At one point he mentioned that it had been his initial suggestion that brought Facebook to speak in front of the House. In his opening statements, McHenry noted, 'The World that Satoshi Nakomoto, author of the Bitcoin whitepaper, envisioned is an unstoppable force. We should not attempt to deter this innovation... those who have tried have already failed.' He then went on to ask questions which highlighted some of the regulatory and philosophical contradictions within Libra. For example, he asked how Libra intended to have the anonymity and decentralization of a cryptocurrency while at the same time pledge that Facebook will have the full authority to lock bad actors out of the network. In another line of questioning, he pointed out that while Facebook has claimed they would abide by all regulations they refused to define Libra as anything that had an existing regulatory regime associated with it (commodity, ETF etc...).

Key Takeaway: In a CNBC interview after the event (see below), McHenry further noted that China's attempted ban of cryptocurrencies had been completely unsuccessful and that Bitcoin's decentralized ledger could not be broken. His message was ultimately that the sooner the United States accept the reality of cryptocurrencies not going away, the more likely the US will be a participant in their inevitable development. His comments have the potential to be analogous to a music record executive in the year 2000 saying that record companies should embrace music file sharing instead of going on a decade-long anti-technology vendetta before accepting the change. As far as Libra is concerned, McHenry was clearly educated on the topic and appeared to have clear doubts that the company had fully thought through the development of this platform. As builders in the space McHenry's perspective on crypto generally is about as close to constructive regulation as one could ask for and we expect we will hear much more from him on the topic in years to come.

About the Author

FRNT Financial is a technology and sales layer that offers institutional and accredited investors access to various forms of exposure to crypto-assets. You can subscribe to FRNT Financial Morning Note at