U.S. House of Representatives forms new cryptocurrency subcommittee

The U.S. House of Representatives has created a new congressional subcommittee focused on digital assets, as one of its first moves under the control of the Republican Party, Congressman Patrick McHenry said on Thursday.

Fast facts

• The Subcommittee on Digital Assets, Financial Technology and Inclusion will be the first in the U.S. specifically focused on digital assets and will operate under the House Financial Services Committee.
• The new subcommittee will provide rules for federal regulators on the topic of digital currencies, develop policies to promote digital financial technology and strengthen diversity and inclusion in the industry, according to a Thursday press release.
• The Subcommittee will be chaired by Republican Congressman French Hill, who has spearheaded efforts to explore a U.S. central bank digital currency.
• “At a time of major technological advancement and change in the financial sector, it is our job to work across the aisle and promote responsible innovation while encouraging FinTech innovation to flourish safely and effectively in the United States,” Hill said in a Thursday statement.
• The formation of the new subcommittee follows a House Financial Services Committee inquiry into the multibillion-dollar collapse of Bahamas-based crypto exchange FTX.com. McHenry, the incoming chair of the committee, said that the Securities and Exchange Commission had not done enough against bad actors in crypto.
• This inquiry was held amid a flurry of legislative activities in the U.S. as lawmakers rushed to address perceived regulatory shortcomings following the FTX collapse. In December, Senator Elizabeth Warren introduced a bill that would require U.S. crypto businesses to follow the same know-your-customer rules as banks to prevent money laundering.