Republicans seek to regulate crypto
After the Republicans took over the House of Representatives, they have formed what they are calling a first-of-its-kind congressional group focused on digital assets. The new Subcommittee on Digital Assets, Financial Technology, and Inclusion was announced last Thursday by Congressman Patrick McHenry (R-NC), as other subcommittees for the House Financial Services Committee were put forth.
McHenry said he believes there’s “a big hole in how we structure the committee” as it spends more resources on topics related to the digital asset sector instead of the larger financial industry, Politico reported last Thursday. The subcommittee will be chaired by Congressman French Hill (R-AR), who was also named as the full committee’s vice-chairman. The new panel will provide “rules of the road” for federal regulators of the digital asset ecosystem, as well as develop policies that reach underserved communities through the promotion of financial innovation, according to a recent press release.
The panel’s creation comes as multiple pieces of crypto-related legislation work their way through the legislative process, such as the Lummis-Gillibrand Responsible Financial Innovation Act—introduced in the Senate in June of last year—and more recently, The Stablecoin TRUST Act, introduced by former Republican Senator Patrick Toomey in the final weeks of his Congressional career.
Hill is no stranger to crypto policy initiatives. In 2021, Hill co-sponsored a bill that required the Board of Governors of the Federal Reserve System to study the potential impact of a U.S. Central Bank Digital Currency (CBDC), calling it “important work” when the report was eventually released.
The subcommittee is seen as a positive
The new subcommittee is being seen as a positive step towards regulatory clarity for the crypto industry. With the increasing popularity and adoption of digital assets, it is important for the government to provide a framework that ensures the safety and security of investors while also promoting innovation.
The formation of this subcommittee also comes at a crucial time, as the crypto market continues to grow and evolve. The subcommittee will be tasked with understanding and addressing the various challenges that the industry faces, from security and fraud to money laundering and financial inclusion.
The crypto community has long been calling for clear and consistent regulations, and the formation of this subcommittee is a step in the right direction. Many in the industry believe that a lack of regulatory clarity has been holding back the growth and development of the crypto market, and this new subcommittee aims to change that.
The subcommittee will be made up of lawmakers from both parties and will be working closely with regulators, industry experts, and other stakeholders to develop policies that promote innovation while protecting investors.
the formation of the new Subcommittee on Digital Assets, Financial Technology, and Inclusion is a big step forward for the crypto industry. It shows that the government is taking the digital assets ecosystem seriously, and is committed to providing a regulatory framework that ensures the safety and security of investors while promoting innovation. As the crypto market continues to grow and evolve, this subcommittee will play a crucial role in shaping its future.