At the Permissionless III cryptocurrency conference in Salt Lake City, Utah Republican Senator Mike Lee outlined three outcomes that could jeopardize the fledgling cryptocurrency industry: (1) the creation of a central bank digital currency, (2) patchwork regulation by states, and (3) tough federal regulation. "Cryptocurrencies are not securities. Cryptocurrencies are not commodities. Cryptocurrencies are used as a medium of exchange," Li explained. "I don't even think we should tax capital gains from the transfer of cryptocurrencies."