By Pete Schroeder and Katanga Johnson

WASHINGTON (Reuters), – Six top executives representing six cryptocurrency companies will speak to Congress Wednesday, asking them not to impose new rules regarding digital assets. Otherwise they could risk sending illegal activity outside of the United States.

In prepared testimony, some executives of major crypto firms indicated that they would support more clear rules ahead of an hearing starting at 10:00 EST in the U.S. House Financial Services Committee. However, they stressed that restrictive ones will not suppress the activity and would only make it more difficult for U.S. access.

In testimony that was released Tuesday, Alesia Haas, Chief Executive of Coinbase (NASDAQ) Inc stated, “Without tailor-made legislative solutions, which are openly discussed with public participation,”. This could lead to crypto activity going underground, or offshore exchanges with little or none compliance programs.

Before the hearing begins, the testimony of the panel was made public by the panel. This sets the stage for what will likely be an closely-watched and high-stakes affair in which U.S. legislators press the cryptocurrency executives to defend it and come up with new ideas for controlling them.

However, several executives argued in favor of a more relaxed approach.

Brian Brooks, Bitfury CEO, stated that there are many examples where U.S. regulations have driven legal activity offshore in ways that hurt U.S. innovators and investors. “There’s a reason that crypto talent is not concentrated in Silicon Valley. This is the originplace of the first commercial Internet.”

Regulations are becoming more concerned by the explosive growth of cryptocurrency. In particular, “stablecoins” (digital assets whose values are pegged to traditional currencies) have caught regulators’ attention. If they are not closely monitored, this could expose the financial system. There are some policymakers who, like Senator Elizabeth Warren and Gary Gensler from the Securities and Exchange Commission, worry that these products can be misused for criminal purposes and taken advantage of consumers unaware.

The U.S. Treasury led working group that recommended November to Congress passed a law stating stablecoins should be only issued by banks and firms with their deposits insured. Analysts believe Wednesday’s hearing will give an indication of how likely Congress might adopt any digital currency legislation.

While executives indicated that they are open to regulatory clarity, restrictive rules may prove detrimental.

Circle Internet Financial’s CEO, Jeremy Allaire said that although stablecoins aren’t too big for failure, they are still too significant to be ignored. Policy frameworks must support open, competitive play and enable new technologies to thrive.

Stablecoin advocates claim that stablecoins can revolutionize payment by providing a secure, fast, and low-cost way to send funds around the world. According to the executives, the United States must play an active role in supporting this technology as the U.S. allowed Internet’s early success in the 1990s thanks to its rules.

In her prepared testimony, Denelle Dixon, the head of Stellar Development Foundation said, “Let’s work together and ensure that US policymakers set the scene for a productive smart, regulatory roadmap to this technology around the globe.” “I hope that we can all agree that crypto and stablecoin shouldn’t be buzzwords, thrown around to incite fear of the unknown.”