While cryptocurrencies are recovering this week, that hasn't dampened calls for regulation after several firms have gone bankrupt, leaving investors exposed or without funds. The EU recently passed regulations, so what can we expect from U.S. lawmakers -- and when? Vinh Vuong, Chairman and CEO of Garrison Fathom, joins Closing Bell to discuss.  

Closing Bell

After EU Passes Crypto Regulation, Will U.S. Lawmakers Move Forward on Their Own Framework?

Okay, well, as we've discussed your Bitcoin and other cryptocurrencies definitely in the grain today, but that hasn't dampened calls for industry regulation. In fact something, it would be a good thing, the EU recently passing a framework for crypto exchanges and stable coin issuers, but in the U. S. Regulation is still very much up in the air. Various lawmakers have proposed their ideas, including crypto oversight by the Cftc, not the sec, but it seems an official framework is still in its infancy. Whichever agency does actually regulate it. So joining me now is mean von Chair and Ceo Garrison pad, um, a diversified holding company with a focus on long term strategies van thanks so much for coming on the show. So considering that the EU did recently passed these crypto regulations, couldn't should lawmakers act faster. Absolutely, lawmakers need to act a lot faster. We have been in heavy conversations, a lot of lawmakers and other regulators in the United States and what the EU did has been fantastic. And it's what we've been advocating. Number one, they're going to require, uh, what they call passports, but they're pretty much licenses to be able to operate within the EU. And what that means is these Cryptocurrency companies or projects have to have asked setbacks, stable coins, which is very important because it provides a lot of security and safety for investors as well as for the companies and actually makes it stable. And then number two requires transparency to actually know who's running these operations and that's been a huge problem with these rug bulls. Um, and then at the same time I think, you know, I really have to applaud the EU because they're moving much faster and efficient. Meanwhile the U. S. A lot of the politics, a lot of bureaucracy has really been in the way it's gonna cause a lot of issues. It's gonna cause a lot of a lot of legal battles as well as a lot of more economic and national security issues within the United States. Maybe just some more uncertainty to lack of transparency. I think a lot of people with the recent crypto winter as we've seen certainly investors, I'm not so sure if Cryptocurrency is the right option for them. Obviously depending on their risk tolerance and time horizon vin about what are some of the elements of the EU framework that you think maybe you should be adopted by U. S. Regulators parts that are good, parts that maybe not be so good for the crypto space. Well, I think first and foremost us lawmakers need to educate themselves a little bit more. Including understand the differences between Blockchain Web three and Cryptocurrency. Cryptocurrency. Most of it's a Ponzi unless it's an asset back, stable coin or a token of a Blockchain because tokens are practically owning a share of a Blockchain Because the core value of what crypto is is really the Blockchain technology that's what's really gonna revolutionize the world and investors and regulators need to clearly understand the difference as well as along with Web three. So in regards to the EU regulation, I think most of it is pretty darn good. I mean we really have pushed the United States. I think the U. S. Regulators need to a really defined the court differences and define what crypto is, what Blockchain is, what tokens are, what state book coins are. Um, and and really require, what do you need to do within the United States to become a legitimate crypto project or company. So that's really important to do as well as really requiring clear transparency, requiring who's your team, who's leaving this? Um what's behind this? I think the most important thing is asset that the problem with a lot of these crypto projects and why a lot of them I say or Ponzi schemes is because it required the next um let's say uneducated or hyped up crypto bro to power on top of each other to succeed, but it's actually nothing correlating that crypto does not hedge. Um, so that's where a lot of issues are. So, so to brief again, you know, cryptocurrencies and the regulators, uh sorry, regulators need to truly understand, define, draw fine line and understand and give the investors and give these Cryptocurrency projects a clear line on what the heck. Okay, let me jump in here vin. I do want to get your take here just quickly. We are waiting to see whether or not it's the cftc that actually does come forward and regulate this industry because crypto seen more as a commodity for instance, um Like gold per se versus the sec, which would actually look at it as a security which could cause tighter scrutiny for some people who have been playing in the crypto market. Is there one agency that you think is better fitted than the other? What happens? I think there needs to be really a group, like a committee uh includes the S. E. C. The C. F. Uh C. C. C. To really to come in and regulate, right? Because crypto is a bit more dynamic, It's really not a commodity. Um Is it a currency, is it? What is it? Right. So I think what's really important is to have multiple of these groups, heads of these groups to come together and create a separate crypto committee to regulate because it's too complex right now and it's different. Anything else we've seen? I'm gonna we're gonna leave it there were tight on time. That's been banging chair and ceo of Garrison fad. Um Thank you