A new subcommittee is born
The Financial Services Committee of the U.S. House of Representatives announced on the 12th that it will establish the first subcommittee on crypto assets (virtual currencies) in the United States. The Commission will hold public hearings and play a key role in drafting legislation to address oversight and policy decisions on new asset classes.
The chairman of the Subcommittee on Digital Assets, Fintech and Inclusiveness is Rep. French Hill, who has promoted research efforts related to Central Bank Digital Currencies (CBDC). Rep. Warren Davidson, known as a cryptocurrency advocate, will serve as vice chairman.
Hill also serves as Vice Chairman of the Financial Services Commission.
I am delighted that in the 118th Congress, I will serve in the pioneering role of Chairman of the Subcommittee on Digital Assets, Financial Technology and Inclusion of the @FinancialCmteand as Vice-Chairman of FSC.
My full statement, below: https://t.co/Tz4S8obetR
—French Hill (@RepFrenchHill) January 12, 2023
This subcommittee will hold public hearings and play an important role in drafting legislation.
- Provide clear rules among federal regulators regarding the digital asset ecosystem
- Formulating policies to facilitate the diffusion of financial technology to underserved communities
- Identifying best practices and policies to continuously enhance diversity and inclusion in the digital asset ecosystem
Hill said in a statement:
At a time of rapid technological progress and change in the financial sector, it is our duty to encourage fintech innovation to thrive safely and effectively in the United States, while at the same time promoting bipartisan cooperation and responsible innovation. .
“Fintech, especially digital assets, has great potential as a tool for building a more inclusive financial system,” Financial Services Commission Chairman Patrick McHenry said in a statement. “We need to address oversight and policymaking on new asset classes,” he said.
According to US political media Politico, Chairman McHenry sees “regulations related to cryptocurrencies” as the top priority of the legislative agenda. He said he will work with Hill to provide clear rules that protect consumers while allowing innovation to flourish in the United States.
Cryptocurrency Market Growing in Importance
The House Financial Services Committee held a public hearing on the former Facebook-led stablecoin “Libra” project (announced in 2019), and a public hearing inviting the heads of six cryptocurrency-related companies on stablecoin regulations (2021). ), and held public hearings on FTX, a major exchange that went bankrupt last year.
Chairman McHenry said that as the committee spends more time tackling cryptocurrency issues, “there is a big hole in the way the committee is structured,” and that a new subcommittee specializing in cryptocurrencies will be created. connected to the installation.
The commission has so far focused primarily on oversight of banks and Wall Street financial firms and their regulators. However, Politico notes that the creation of the Digital Assets Subcommittee underscores that “cryptocurrencies have come to dominate the financial regulatory agenda in Congress.”
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