US Congress to Set New Subcommittee on Crypto

The U.S. House of Representatives announced the creation of a subcommittee dedicated to digital assets. It will be operated under the Financial Services Committee.

So, firstly, the body will develop rules for federal regulators focusing on cryptocurrencies. In addition, its jurisdiction will cover the creation of policies to promote digital financial technologies and to strengthen diversity and inclusion in the industry.

Republican Rep. French Hill will chair the new digital assets subcommittee. Recall that he previously led the effort towards the CBDC Study.

According to Hill, the committee’s job will be to work across the aisle and promote responsible innovation while encouraging FinTech innovation to flourish safely and effectively in the United States.

It is worth emphasizing that the initiative to form such a subcommittee came after the investigation of the U.S. House Financial Services Committee of the fall of the crypto exchange FTX. According to the new House speaker Patrick McHenry, the SEC efforts against the ‘bad actors’ in the industry were insufficient.

At the end of last year, Senate Banking Committee Chairman Sherrod Brown suggested that regulators should consider a more radical option to ban cryptocurrencies. However, he pointed out that implementing such a scenario could be rather difficult.