After taking control of the House of Representatives, Republicans are forming what they call the first congressional caucus of its kind focused on digital assets.
The new Digital Assets, Financial Technology, and Inclusion subcommittee was announced Thursday by Congressman Patrick McHenry (R-NC), and other subcommittees of the House Financial Services Committee were also discussed.
McHenry said he believes there is a “big gap in the way the committee is structured” because it puts more resources into topics related to the digital asset sector rather than the larger financial industry, Politico mentioned Thursday.
The subcommittee will be chaired by Congressman French Hill (R-R), who is also named vice chair of the full committee. The new commission will provide “rules of the road” to federal regulators for the digital asset ecosystem, as well as develop policies that reach disadvantaged communities by promoting financial innovation, according to a recent report. press release.
“At a time of significant technological advances and change in the financial sector, our mission is to work across the board and advance responsible innovation while encouraging fintech innovation to flourish safely and efficiently in the United States.” Hill wrote in one statment Share on Thursday.
The creation of the committee comes as several cryptocurrency-related pieces of legislation work their way through the legislative process, such as the Lummis-Gillibrand Responsible Financial Innovation Act — which was introduced in the Senate last June — and most recently the Stablecoin TRUST Act, which was introduced by a former Republican senator. Patrick Toomey during the past weeks of his congressional career.
Hill is no stranger to crypto-political initiatives. In 2021, Hill co-sponsored a bill requiring the Board of Governors of the Federal Reserve System to study the potential implications of a United States central bank digital currency (CBDC), He calls it “Important work” when the report was finally released.
Some Republican lawmakers have criticized the way regulators have handled the digital asset industry, such as Congressman Tom Emmer (R-MN), who Screamed The Securities and Exchange Commission (SEC) chaired by Gary Gensler called the regulation by enforcement approach.
Republicans are expected to use the 118th Congress as an opportunity to bring regulatory clarity to the emerging asset class — a goal widely shared across the financial sector as well as through the halls of government.
McHenry identified the digital asset ecosystem as an area for the House Financial Services Committee to work on in December when he was named the committee’s new chair, saying it would seek “An overarching regulatory framework for the digital asset ecosystem.”
McHenry was among the many lawmakers who joined one series of criticism After the rapid collapse of cryptocurrency exchange FTX in November, arguing that a strong regulatory framework would have helped avert a crisis that shook the cryptocurrency to its core and negatively affected countless US investors.
McHenry Books press release. “It is imperative that Congress create a framework that will ensure that Americans are adequately protected while allowing innovation to flourish here in the United States.”
He also raised the possibility of talking to companies like Binance and focusing on the role they played in the collapse of FTX after CEO Changpeng Zhao announced his company’s decision to sell its FTT holdings — and later abandon its purchase of the now-bankrupt Sam Bankman-Fried exchange.
“I look forward to hearing more from FTX and Binance in the coming days about these events and the steps they will take to protect customers during the transition,” said McHenry.
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