(Kitco News) - U.S. Rep. Raja Krishnamoorthi (D-IL) says he is worried about "the long-term stability of the U.S. dollar" as China is working to "displace" the greenback. He also warns of the risk of China's interference in the U.S. elections on November 5th.
"The CCP is about to basically try to displace the dollar," Krishnamoorthi told Michelle Makori, Lead Anchor and Editor-in-Chief at Kitco News, on the sidelines of Consensus 2024. "What I don't want to see is a situation where China is able to set international standards with regard to what digital currencies could be. And in that process, basically, ice us out."
The Ranking Member of the Select Committee on the Strategic Competition Between the United States and the Chinese Communist Party (CCP) added that he is worried about the long-term stability of the dollar.
"Our fiscal house is not in order. We're hurting ourselves, hurting the strength of the dollar with our own actions. So we have to get our house in order. At the end of the day, the dollar will still reign supreme because there's no rule of law in the CCP," said Congressman Krishnamoorthi.
Congressman Krishnamoorthi stated that it is crucial to ensure the U.S. stays competitive in blockchain technology. "We have to make sure that the prosperity and wealth that comes from developments here stay in the U.S.," he said.
Another concern that Congressman Krishnamoorthi has is China's interference in U.S. elections.
There is evidence that China is already on the edge of influencing U.S. elections through sophisticated social media campaigns, he explained.
"They have deep fakes, they use artificial intelligence, they put out misinformation about candidates. We have to be on the lookout for it. The Office of the Director of National Intelligence has already said that they believe that the CCP is going to do that in the upcoming elections," Krishnamoorthi said.
Watch the video above to find out what Krishnamoorthi proposes we can do about this.
Crypto is now an election issue
According to a Harris Poll funded by bitcoin ETF issuer Grayscale, one-third of U.S. voters will consider candidates' crypto views before voting. In addition, 77% of those surveyed believe a U.S. presidential candidate should have an informed perspective on crypto.
Congressman Krishnamoorthi said he sees more people expecting their representatives to understand crypto.
"Some people in Congress think that crypto is a fad and crypto is a scam. But it's not. It's something that perhaps 50 million Americans have as part of their portfolio. Many voters form their viewpoints based on how the government regulates this particular space," he said.
In the future, more politicians on both sides of the aisle will be learning and educating themselves about this topic.
"As we near an election, voters will ask questions like: where do you stand on crypto? Where do you stand on Bitcoin? It forces people to think it through. We just had a vote recently on FIT21 [Financial Innovation and Technology for the 21st Century Act], and that was a big vote that got people to think through their positions. As people reasoned it out, it became clear to many Democrats that we have to have a regulatory environment appropriate for the issue at hand," Krishnamoorthi noted.
FIT21 provides a floor for crypto regulation in the U.S. "We have zero regulation today. We are in the Wild West with regard to crypto. We have to start somewhere; we have to provide certainty. If there's no certainty, then people won't be able to innovate. And we don't want that innovation to go overseas and for that wealth and prosperity to be created elsewhere," he said.
Congressman Krishnamoorthi voted for the FIT21 Act, which would establish a regime to regulate the U.S. crypto markets and bring digital asset supervision under the CFTC, along with 70 other Democrats. The bill passed the house but is not expected to pass in the Senate.
Representative Krishnamoorthi voted against the CBDC Anti-Surveillance State Act, which the House passed in a vote of 216-192. The bill aims to block the Federal Reserve from directly offering a CBDC (Central Bank Digital Currency) to individuals and using it to implement monetary policy.
To see why he did not support the bill which, watch interview above.
Congressman Krishnamoorthi has also introduced the Bipartisan Restoring Faith in Government Act alongside Congresswoman Alexandria Ocasio-Cortez and Congressmen Matt Gaetz. The legislation aims to prohibit financial investments by members of Congress, their spouses, and any dependents.
“I don't think we should be doing any of that because we have too much insider information,” he said.
Congressman Krishnamoorthi is the Ranking Member of the Select Committee on Strategic Competition Between the United States and the Chinese Communist Party. He also serves on the House Permanent Select Committee on Intelligence and the Committee on Oversight and Accountability as a member of the Subcommittee on Economic Growth, Energy Policy, and Regulatory Affairs.
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