Two US congressional members, Warren Davidson and Mike Flood, have written a letter to the Council of Economic Advisers (CEA) chairman, objecting to a chapter in the “Economic Report of the President” that they believe is hostile to digital assets and diminishes Congress’s role. The report’s chapter, entitled “The Reality of Crypto Assets,” claimed that digital assets “have brought none of the promised benefits,” which the lawmakers say is a reversal of the position taken in the president’s “Executive Order on Ensuring Responsible Development of Digital Assets.” The congressmen argued that the administration’s hostility towards digital assets could push innovation offshore and divert capital and economic growth away from the US.
They also questioned why the agency dismissed the role of Congress and whether existing regulations are enough to mitigate risks and protect consumers. The legislators demanded an explanation and set a May 26 deadline for the answers. Davidson and Flood are both advocates of digital assets and have introduced bills that support the industry.