According to Cointelegraph, U.S. Representative John Curtis of Utah and Senator Mike Lee discussed the future of digital asset policy at the Permissionless III conference.

Curtis said bipartisan efforts to repeal SAB-121 could be revived but are very fragile, and he stressed that it will be difficult to make progress in Washington if the issue becomes a partisan one.

Curtis called on industry professionals to educate lawmakers and explain the technical details of the crypto industry in detail to eliminate lawmakers' fear of the unknown.

Senator Mike Lee believes that the Federal Reserve creating a CBDC, excessive federal government regulation, and conflicting regulations between states are the three worst-case scenarios facing cryptocurrencies.

Lee stressed that cryptocurrencies are a new asset class that requires new regulatory approaches and said that capital gains taxes should not be levied on their transfers.

Lee concluded by stressing that in order for innovation in the crypto industry to flourish, governments must avoid over-regulation.