Now that Republicans control the House, they want to set the agenda for crypto. Patrick McHenry (pictured above), chairman of the Financial Services Committee, announced the creation of a subcommittee on digital assets, financial technology and inclusion aimed at developing policy for technologies such as cryptocurrencies. Led by Rep. French Hill, the group hopes to create “clear rules of the road” for federal regulators, developing policies to bring financial technology to underserved communities and enhance diversity and inclusion in digital assets.
during an interview politician, McHenry said he is creating a subcommittee to address a “big hole” in the way financial services firms handle encryption. McHenry sees cryptocurrency regulation as his main legislative priority, with panel chair Hill leading a Republican investigation into potential central bank-backed cryptocurrencies.
The move comes as regulators struggle to find common ground among cryptocurrencies. While agencies such as the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) agree that digital assets are subject to existing laws, there is debate over who should step in and when. Senators introduced a bill that would create a clear regulatory framework, but it has stuck in committee.
House subcommittees are under pressure to act. The implosion of cryptocurrency giant FTX has highlighted the risks of letting the technology go unchecked. Officials are also investigating possible violations by major industry names such as Celsius and Coinbase. In theory, clearer rules would improve the federal government’s response to such violations.
Not sure how effective the House panel will be. While both major parties have crypto supporters, Democrats’ expanded control of the Senate could prevent the bill from becoming law if there are any major differences. Both branches of Congress must pass and coordinate legislation before the bill reaches the president’s desk. However, the existence of the subcommittee shows that Congress is taking cryptocurrencies more seriously, and it has the potential to accelerate bipartisan efforts to oversee digital currencies and tokens.