CTA Senior Manager of Government Affairs John Mitchell led a discussion at CES on the use of blockchain as the basis of a new economic ecosystem. Coinbase Head of U.S. Policy Kara Calvert, FinClusive CEO Amit Sharma, and Paradigm Policy Director Justin Slaughter expressed enthusiasm about the potential for financial inclusion and digital identity as well as frustration over U.S. legislators’ approach to regulation. “Here, blockchain is positioned as a problem to address, not an opportunity to be seized,” suggested Slaughter. Meanwhile, they note, Switzerland, China and other countries are taking the lead.

Calvert pointed out that blockchain is part of the evolution of the Internet from Web1 (reading) to Web2 (transferring information back and forth) to Web3, which “is about transferring value, a true economic development.” Sharma reported that “financial services are evolving in web native forms.”

“If you can accomplish that in a peer-to-peer way, it’s amazing from a financial inclusion point of view,” he said. Slaughter’s argued that Web2 companies like Google “can kick you out any time.” “You’re a renter, not an owner,” he said. “You get no monetary value from it. By adding finance, you decentralize the web, make it accessible and it’s not owned by a few giant companies.”

Mitchell reported that Singapore and Switzerland “are considered pioneers in promoting blockchain with clear guidelines,” while “in China, it’s more stringent” and asked panelists to describe how the U.S. approach differs.

Slaughter, quoting Winston Churchill, said that, “the U.S. can always be counted on to do the right thing … eventually.” “We’re the slowest country in this sector,” he said. “Our system of regulation is more balkanized; we have more tech regulators, and the lines of jurisdiction aren’t clear. That creates a stasis.”

Calvert agreed, adding that “it’s important that when we think about national security, it’s clear so companies know where they sit in the ecosystem and what they need to do to comply.” Sharma added that, “regulators are struggling to decide who has jurisdiction.”

Panelists all noted that their sector needs to overcome the concept that cryptocurrency and blockchain is “all speculation.” “More Americans own crypto than stock,” said Slaughter, revealing that such owners are nearly all under 40.

Sharma noted the harm that crypto scandals have done. “Crypto is the biggest obstacle,” he said. “We have to divorce ourselves from fraud, corruption and waste in the industry. We need to dispel the myth that it’s a problem with the technology.”

Moving forward with regulation has been difficult, says Calvert because the inherent decentralization of blockchain makes it hard for policymakers to identify leaders. Slaughter added that, “so few people in government want to talk with us” because of a lack of understanding.

For Calvert, the solution is to double-down on educating Congress members and advocating for blockchain. “Eighty-three percent of G20 countries have some regulatory framework in place,” she said. “We need to make sure it happens here.”