House Republicans create a panel to form crypto policy
Republicans now control the House of Representatives and they want to set the crypto agenda. Patrick McHenry, Chair of the Financial Services Committee (above), has announced A Subcommittee on Digital Assets, Financial Technology and Inclusion, which aims to establish policy for technology like cryptocurrency. French Hill, Rep., is the chairman of the panel. The panel aims to create “clear rules for the road” for federal regulators, establish policies that bring financial technologies to poor communities, and boost diversity and inclusion in digital assets.
In interview With PoliticoMcHenry explained that he was creating the subcommittee because of a “big hole in Financial Services approach to crypto issues.” McHenry views crypto regulation as his primary legislative priority. Hill, the panel chair, has been leading the GOP’s investigation on a possible violation. central bank-backed cryptocurrency.
As regulators struggle for common ground in crypto, this move is a welcome one. Although agencies such as the Securities and Exchange Commission and Commodity Futures Trading Commission agree that digital assets can be used, they disagree on how to define them. subject to existing lawsThere have been many disputes over who should take the reins and when. Senators introduced a bill to create a clear regulatory frameworkIt has been, however. stuck In committee.
The House subcommittee is under pressure to act. The implosion of crypto giant FTX The risks associated with allowing the technology to be unchecked have been highlighted by the recent scandal. Officials are also investigating key industry names like Celsius And Coinbase Over possible rule violations The federal government would respond more effectively to violations such as these if there were clearer rules.
It is not clear how efficient the House panel will prove to be. There are crypto supporters from both major parties. However, the Democrats’ increased control in the Senate could stop bills becoming law if there is a substantial disagreement. Both sections of Congress need to pass and conciliate legislation before it can be sent to the President’s desk. Although the existence of this subcommittee indicates that Congress is more serious about crypto, there is a possibility it could accelerate bipartisan efforts for digital money and token oversight.