Better Know a Crypto Candidate: John Avlon

John Avlon is running to represent the state of New York’s 1st Congressional District in the United States House of Representatives. Avlon — a Democrat, former CNN anchor, and former editor-in-chief of The Daily Beast — will face off against incumbent Republican Nick LaLota in November.

Though Avlon has never held elected office, he worked as a speechwriter and deputy policy director for former New York Mayor Rudy Giuliani and has authored several books about US politics. Launching his campaign for the House in February, his website includes policy plans for “clear rules of the road” for digital assets.

“The lack of clear regulations has also been deeply counterproductive to the growing digital currency industry and a disservice to consumers,” Avlon’s website stated. “The lack of leadership risks undercutting American dominance in this industry. When elected to Congress, I will strongly support legislation like the Financial Innovation and Technology of the 21st Century Act and encourage the creation of a broad bipartisan coalition on the need for clear, fair, and future-focused regulation for cryptocurrencies and blockchain technology.”

Republicans have controlled New York’s 1st Congressional District since 2015 and currently have a slim majority in the House of Representatives. Avlon retaking the district for Democrats could help determine whether the party flips the House in 2025.

The New York candidate answered 10 questions about his views on digital assets and blockchain technology sent by Cointelegraph via email.

Name: John Avlon

Party: Democrat

Running: US House of Representatives, New York’s 1st Congressional District

Cointelegraph: What is your stance on stablecoins? Should they be regulated like traditional financial instruments, and if so, how?

John Avlon: I support legislation like the Clarity for Payment Stablecoins Act. This bipartisan bill would create a regulatory framework for payment stablecoins (digital assets which an issuer must redeem for a fixed monetary value). It is critical that the appropriate level reserves be available for consumer protection and trust in the system and that the issuers themselves can be trusted.

CT: Do you support the development of a CBDC (digital dollar) in the US? Why or why not?

JA: I support the continued investigation and study looking at the risks, benefits, and necessity of developing a central bank digital currency. The Federal Reserve report on this subject did not provide a recommendation to policymakers but did establish an interagency working group that is continuing to consider the worthiness of a CBDC. 

134 countries are researching or piloting a CBDC but I believe it is important to keep in mind that our existing payment system is trusted to deliver funds digitally and have to determine if a CBDC would perform better at lower costs.

CT: Stablecoins have been pitched as a way to potentially extend US-dollar dominance by decades, do you agree with this plan, why or why not?

JA: Yes. A recent report commissioned by Visa found that stablecoins are boosting the dominance of the US dollar. I believe it should always be a priority for policymakers to offer policies that protect the American dollar, our domestic economy, and the buying power of American consumers.

CT: What role do you think Congress should play in regulating DeFi, and what specific risks or benefits do you see?

JA: I support the FIT21 Act, which my opponent, Nick LaLota, voted against. The bill establishes a regulatory framework for determining when the SEC or CFTC has jurisdiction over a digital asset. Specifically, a digital asset would be subject to SEC regulation if it is linked to a blockchain system that is not decentralized (to be known as a “restricted digital asset,” while those linked to blockchains on decentralized networks would be subject to CFTC regulation (and be known as “digital commodities”).

CT: What role do you believe the SEC and/or CFTC should play in overseeing the cryptocurrency industry?

JA: I support establishing the framework under the FIT21 Act in which the SEC would regulate digital assets and the CFTC would regulate digital commodities.

Related: NYDFS chief’s advice for crypto firms: ‘Never surprise your regulator’

CT: Some traditional banks are beginning to integrate cryptocurrency services. Do you support this trend, and how should Congress approach the regulation of banks that engage in crypto activities?

JA: I believe that any business has the right to expand its services and product lines as long as it is in accordance with the law. If banks want to offer cryptocurrency services they should have that right.

For me, I want to make sure that banks are able to uphold consumer protections like reserve requirements and know who they are sending money to.

CT: Do you personally own any cryptocurrencies or digital assets, and how does that influence your stance on these issues?

JA: Yes, I own crypto through an investment fund.

CT: Looking ahead, where do you see the future of cryptocurrencies and blockchain technologies in the US over the next 10 years? What role will Congress play in shaping that future?

JA: I believe that first we have to establish a workable domestic regulatory framework that allows regulators to protect consumers without stifling the growing technology. After that I hope that the US will lead in establishing a global regulatory framework which is already on the horizon.

CT: What is your position on self-custody of digital assets?

JA: I believe that as long as the consumer is fully aware of the risks associated with taking on the full responsibility of self-custody than they are entitled to take on those risks. I think it is akin to leaving cash under your mattress. If there is a housefire there is no way to get those funds backs. That is a risk that that individual [sic] chose to take on.

CT: What role do you think a candidate’s view on digital assets should have among voters in an election year?

JA: I believe that generally voters are looking for candidates to demonstrate that they are thinking about the future and preparing for future prosperity and being proactive and embracing new technologies is how a candidate cand do that.

We cannot allow technology to be a partisan issue and the crypto industry should ensure that it has bipartisan support. For me, this is an issue of American competitiveness and leadership.

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