Congressman Patrick McHenry of the U.S. House of Representatives said on Thursday that he is creating a new congressional subcommittee focused on digital assets as one of the first steps under the Republican Party’s control. The digital assets, financial technology and inclusion subcommittee of this committee, which will operate under the House Financial Services Committee, will be the first committee in the United States to focus specifically on digital assets.
The new subcommittee will provide guidelines to federal regulators on digital currencies and promote financial technology, according to a press release Thursday. This committee will develop policies to strengthen diversity and inclusion in the industry while promoting fintech. The subcommittee focused on cryptocurrency will be chaired by Republican Congressman French Hill, who is known for spearheading efforts to explore the US Federal Reserve Digital Currency. President Hill’s statement on the subject is as follows:
“At a time of great technological advancement and change in the financial industry, it is our job to work along the corridor and promote responsible innovation as well as the safe and effective development of FinTech innovation in the United States.”
The formation of the new U.S. House of Representatives subcommittee was announced in the wake of the House Financial Services Committee investigation, which opened after the multibillion-dollar collapse of Bahamas-based crypto exchange FTX. The new chairman of the committee, McHenry, expressed that the Securities and Exchange Commission is not doing enough against the bad players in crypto. This investigation was carried out amid the intense flurry of legislative activity in the United States by lawmakers to address perceived regulatory shortfalls in the wake of FTX’s collapse. In December, Senator Elizabeth Warren introduced a new bill that would require US crypto businesses to comply with some new rules regarding banks, their customers, to prevent money laundering.