The Republican-controlled House of Representatives has established a new legislative subcommittee focused on digital assets, according to Congressman Patrick McHenry on Thursday.
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The Subcommittee on Digital Assets, Financial Technology, and Inclusion will be the first of its kind in the United States, reporting to the House Financial Services Committee.
According to a news statement issued on Thursday, the new subcommittee will offer regulations for federal authorities on the topic of digital currencies, develop policies to encourage digital financial technology, and increase diversity and inclusion in business.
Republican Congressman French Hill, who has pioneered attempts to investigate a US central bank digital currency, will lead the subcommittee.
“At a time of significant technological advancement and change in the financial sector, it is our responsibility to work across the aisle and encourage safe and efficient growth of FinTech innovation in the US while promoting responsible innovation,” Hill said in a statement on Thursday.
The new subcommittee was formed in response to a House Financial Services Committee investigation into the multibillion-dollar collapse of the Bahamas-based crypto exchange FTX.com. McHenry, the committee’s new chair, stated that the Securities and Exchange Commission had not done enough to combat rogue actors in cryptocurrency.
This examination took place amid a frenzy of legislative activity in the United States as politicians rushed to fix perceived regulatory inadequacies in the aftermath of the FTX collapse. Senator Elizabeth Warren filed legislation in December that would force US crypto firms to adopt the same know-your-customer standards as banks to combat money laundering.