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Day: March 9, 2022

Biden’s Digital Assets Executive Order Gets It ‘Mostly Right’ on Protecting Consumers and Innovation in Crypto

Washington, D.C. – Today, President Biden signed an executive order on digital assets, the first major federal executive action relating to cryptocurrencies in the United States.

Yaël Ossowski, deputy director of the consumer advocacy group Consumer Choice Center, praised the order for getting smart cryptocurrency regulation “mostly right”.

“President Biden’s statements demonstrate the federal government’s acknowledgment that Bitcoin and cryptocurrencies will play a positive role in our nation’s future, and offers some key guidance on ensuring the entire crypto economy remains competitive, transparent, and innovative for consumers,” said Ossowski.

“Protecting consumers from scams, giving legal certainty, and allowing for innovation to create new standards for cryptocurrency rules is a responsible and legitimate role for government when it comes to digital assets. We must recognize that the nascent crypto finance space is ever-changing and rapidly evolving and that overzealous regulation could cripple future potential.

“Biden echoed concerns about Bitcoin and cryptocurrency mining, but we believe the environmental benefits from accepting mining will far outweigh any negative repercussions. Crypto mining is an innovative field that strengthens networks and creates incentives for clean energy,” said Ossowski.

“Last year, my colleagues and I at the Consumer Choice Center released our Principles for Smart Crypto Regulation, underscoring the need for preventing fraud, pursuing technological neutrality, reasonably low taxation, and legal certainty and transparency.

“However, considering the toll of inflation on ordinary Americans and the civil liberties concerns related to consumers’ financial privacy, the plans to research a Central Bank Digital Currency are concerning and will need much more scrutiny in the months to come.

“Overall, we praise the administration’s efforts on keeping cryptocurrency legitimate and accessible and hope any legislation to come will follow these bedrock principles. We’re all going to make it,” concluded Ossowski.

Congress wants to sneak in an effective ban on synthetic nicotine vaping that would harm consumers

WASHINGTON, D.C. – This week, it was revealed that several congressmen and US senators have added a provision in the upcoming emergency government funding bill that would relegate tobacco-free synthetic nicotine to the regulatory authority of the Food and Drug Administration and its premarket tobacco application process.

This would give vaping firms less than two months to file a lengthy and convoluted Premarket Tobacco Application (PMTA), which will ultimately lead to most small vaping firms and shops going out of business.

Yaël Ossowski, deputy director of the Consumer Choice Center, said this will actively harm adults who want to quit smoking.

“The byzantine process of asking permission to sell harm reducing vaping products in the 21st century is asinine in itself. But using sleight of hand during an emergency government funding bill to castigate millions of vapers and the entrepreneurs who make and sell the products they rely on is the definition of active harm,” said Ossowski.

“Only the largest and most powerful vaping and tobacco companies can afford the lawyers and the time necessary to complete the paperwork necessary to pass the FDA’s process, meaning thousands of hard-working American business owners will now be forced to close, depriving millions of adult consumers of harm reducing options. Many will be forced back to cigarettes.

“Synthetic nicotine is an innovative method of providing nicotine independent of tobacco, and millions of American adults now use these products as a less harmful method of consuming nicotine. A back door bureaucratic power move like this represents a sledgehammer to the men and women of our country who have sought out vaping devices to kick their cigarette habit,” added Ossowski.

“The method of fattening up continuing resolution bills with laws that benefit special interests, without broader democratic debate or analysis of the costs and benefits, is shameful in our modern American Republic.

“We hope our elected representatives reject this particular provision on synthetic nicotine and go back to the drawing board to offer a more permanent, sane, and smart policy on the next generation of vaping products,” said Ossowski.

41% of European consumers agree that sharing economy apps make life easier

The Consumer Choice Center commissioned the market research company Savanta to survey European consumers on four different EU policy-making areas: Consumer Choice and Government; Innovation & Sharing Economy; Agriculture & Food; and Science & Energy.

In February 2022, 500 people were surveyed in Belgium on their views on innovation, nuclear energy, agriculture, sharing economy, and government intervention in the economy.

Maria Chaplia, the Research Manager at the Consumer Choice Center, said: “The polling results are encouraging. European consumers overwhelmingly appreciate consumer choice. A wide array of agricultural regulations put forward by the EU and member states are at odds with what European consumers want.”

Key findings:

  • 69% of European consumers agree that the government should not restrict their freedom to choose.
  • 73% of European consumers think that the European Union should be more open to innovative solutions.
  • Two times more European consumers (41% agree and 22% disagree) agree that sharing economy apps makes their lives easier.
  • 69% of European consumers interviewed agree that innovation plays an important role in making their lives better.

“Innovation has made millions of European consumers better off. Thanks to platform economy apps such as Uber, Deliveroo, and many others, consumers can now choose between various delivery and transportation options. No wonder European consumers value the sharing economy apps so much,” said Chaplia.

“Platform economy apps have boosted consumer choice and given many Europeans the opportunity to work independently. Gig work provides flexibility which increases its attractiveness to many Europeans. However, in December 2021, the European Commission presented plans to regulate gig workers’ work conditions, which will essentially diminish the self-employment model. The overregulation of platforms will have spillover effects on consumer choice, and the EU should abstain from such moves,” concluded Chaplia.

Banning Flavored Vaping Products Will Do More Harm Than Good in Maine

This year, state lawmakers introduced two bills that would outlaw flavors for liquids used in nicotine vaping devices. The bills, LB 1550 and LB 1693, would ultimately harm adult users of these products, likely driving them back to using tobacco. These bills are currently being reviewed by the joint committees and will soon go to a vote.

Yaël Ossowski, deputy director at the D.C.-based Consumer Choice Center, said “enacting a flavor ban for vaping products will do more harm than good as it will push adult consumers to switch back to smoking combustible tobacco. Considering that studies have shown vaping to be 95% less harmful than smoking, ensuring that adult consumers have access to the vaping products they prefer will ultimately lead to fewer cigarette smoking-related deaths within the state.

“More than 4.1% of Maine’s adult population uses vaping products, accounting for over 54,000 consumers within the state who have switched to a healthier alternative to combustible tobacco. Banning flavored vaping products will encourage these former smokers to switch back to smoking cigarettes and will ultimately lead to increases in smoking-related healthcare costs, which are already costing (state) taxpayers over $262.6 million annually,” said Ossowski.

“If a flavor ban is enacted, then consumers will likely look towards the black market in order to get access to their preferred flavored vaping products. This presents serious concerns for public health as vapers will be purchasing unregulated products that could be extremely dangerous to their wellbeing.

“In addition to endangering public health, pushing consumers to the black market through a flavor ban will also be to the detriment of many vape shops throughout the state as many of their products will no longer be available. After already suffering through the economic hardships of the pandemic, this bill could effectively kill many of these small businesses already struggling to stay afloat. 

“Instead of implementing misguided flavor bans, lawmakers should embrace vaping products in order to protect public health, small businesses, and consumer choice throughout the state,” said Ossowski.

European consumers agree that the EU is too cautious about GMOs

The Consumer Choice Center commissioned the market research company Savanta to survey European consumers on four different EU policy-making areas: Consumer Choice and Government; Innovation & Sharing Economy; Agriculture & Food; and Science & Energy.

In February 2022, 500 people were surveyed in Belgium on their views on innovation, nuclear energy, agriculture, sharing economy, and government intervention in the economy.

Maria Chaplia, the Research Manager at the Consumer Choice Center, said: “The polling results are encouraging. European consumers overwhelmingly appreciate consumer choice. A wide array of agricultural regulations put forward by the EU and member states are at odds with what European consumers want.”

Key findings:

  • 67% of European consumers would like the European Union to embrace technologies that make food more affordable.
  • 59% of European consumers trusted farmers to use crop protection products adequately to make safe food.
  • 33% of European consumers agree that the EU is too cautious about genetically modified organisms.
  • 59% of consumers interviewed agree that the European Union often over regulates at the expense of European Consumers.
  • 73% of consumers think that the European Union should be more open to innovative solutions.

“The EU shouldn’t restrict farmers’ freedom to use the preferred crop protection tools to avoid these unintended consequences. Alternatively, the EU should consider legalizing genetic modification. European consumers trust farmers to choose crop protection tools to make food safe. Despite popular rhetoric, there is no substantial scientific evidence of the health and environmental risks ascribed to GM products,” said Chaplia.

“The war in Ukraine, one of the largest wheat exporters in the world, threatens European and global food security. At such a challenging time, the EU cannot simply afford to pursue expensive organic ambitions. Now is the time to embrace innovation over unjustified precaution,” concluded Chaplia.

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