US Congress to form cryptocurrency working group

WASHINGTON, Feb 4 (Reuters) - U.S. Representative French Hill, a Republican who chairs the House Financial Services Committee, said on Tuesday lawmakers from both chambers of congress would form a working group to develop policy favoring development of digital assets.

New legislation will deliver "clarity for a regulatory framework," Hill said at a Capitol Hill news conference, joined by White House crypto and artificial intelligence czar David Sacks as well as other lawmakers.

U.S. President Donald Trump in January ordered formation of a cryptocurrency working group comprised of agency heads tasked with proposing new digital asset regulations and exploring creation of a national cryptocurrency stockpile.

On the campaign trail, Trump courted crypto cash by pledging to be a "crypto president" and promote adoption of digital assets. Trump also has his own crypto token.

In contrast, former President Joe Biden's regulators sought to protect Americans from fraud and money laundering with a crackdown on the industry. The administration sued exchanges Coinbase, Binance and dozens more, alleging they were flouting U.S. laws. The companies deny the allegations.

Sacks said Trump had made studying a possible strategic crypto reserve a priority for a working group in the executive branch.

"We're still in the very early stages of this, but that's one of the first things we're going to look at," he said.