The Financial Services Commission aims to bring order to an industry many say suffers from a lack of proper rulemaking.
On January 12, 2023, incoming House Financial Services Committee Chairman Patrick McHenry established a new subcommittee on Digital Assets, Financial Technology and Inclusion. Rep. French Hill will chair the subcommittee, and Rep. Warren Davidson will serve as vice-chair.
According to Rep. McHenry, the subcommittee will:
- Provide federal regulators with clear rules for the digital asset ecosystem.
- Develop policies that promote financial technology to reach underserved communities.When
- Identify best practices and policies to enhance diversity and inclusion in the digital asset ecosystem.
The subcommittee also schedules preliminary public hearings with industry representatives and plays a key role in developing legislation where gaps exist.
Congressmen McHenry, Hill, and Davidson have led a legislative effort calling for greater oversight of the fintech and digital asset industries. Persistent concerns include stablecoin guardrails, potential central bank digital currency (CBDC) development, and jurisdictional friction between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). included. The creation of a new cryptocurrency subcommittee marks Congress’ serious attempt to align the digital asset industry with the oversight of traditional financial institutions. (The powerful House Financial Services Committee has jurisdiction over issues related to the U.S. economy, banking system, housing, insurance, securities, and exchanges.) The subcommittee, therefore, has other sources of regulatory momentum. along with the much-needed operational clarity. For the difficult crypto industry.