Top executives from six major cryptocurrency companies including Coinbase and Circle on Wednesday urged Congress to provide clearer rules for the booming $3 trillion industry, but said that inflexible restrictions would push business overseas.
The US House of Representatives Financial Services Committee marked the first time senior cryptocurrency leaders have explained their businesses to members of Congress amid growing concerns cryptocurrencies may pose systemic risks and hurt investors.
The executives repeated calls for careful, bespoke rules rather than forcing the industry to comply with existing regulations.
“Without tailored legislative solutions that are openly debated with public participation, the United States risks unnecessarily onerous and chilling laws and regulations,” said Alesia Haas, chief executive of Coinbase.
Congress is unlikely to make new crypto rules anytime soon, analysts say, and committee members treated the hearing primarily as a fact-finding exercise.
Democrat Maxine Waters, who heads the panel, said there are questions about proper oversight and singled out Facebook's stablecoin plans as a major concern given the company's huge global reach.
Some members of Congress, Republicans in particular, praised the executives for leading the way on what could be a pivotal technology.
“I am tremendously impressed. I see a lot of ingenuity, a lot of entrepreneurial spirit,” said Pete Sessions, a Texas Republican. “We need to be supportive of you.”
The chief executives of FTX Trading, Paxos, Stellar Development Foundation and BitFury also testified.
The rapid growth of cryptocurrencies and in particular stablecoins — digital assets pegged to traditional currencies — has caught the attention of regulators, who fear they could put the financial system at risk if not properly monitored.
Some policymakers, such as Elizabeth Warren and Securities and Exchange Commission Chairman Gary Gensler, are also concerned the products could be used for illicit purposes or to take advantage of unsuspecting consumers.
In November, a US Treasury-led working group recommended Congress pass a law specifying stablecoins should only be issued by companies that have insured deposits, like banks.
Executives said they would welcome regulatory clarity, which could help the industry expand, but that overly restrictive rules could prove counterproductive.
The rapid growth in the sector underscores there is strong investor appetite for digital assets and should be supported with clear rules rather than stifled, they said.
BitFury's Brian Brooks, who was formerly chief executive of Binance's US business and before that a bank regulator, told the committee that cryptocurrencies are similar to traditional assets.
“We are the last country standing that hasn't figured that out,” he said.
But the complexity and volatility of cryptocurrencies, as well as wildly varying standards about disclosure, reserves, consumer protection and other policies, have left some concerned.
“Most of the people that I know that have invested in cryptocurrencies [have done so] … because they think they can get rich quick,” said Juan Vargas, a representative from California.
“We've seen this before, unfortunately, and it led to the financial crisis.”
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Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
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Global state-owned investor ranking by size
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United States
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China
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UAE
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Japan
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Norway
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Canada
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Singapore
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Australia
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Saudi Arabia
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South Korea
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