Earlier this month, the House Financial Services Committee announced the chairs of each subcommittee. New to the mix is the Subcommittee on Digital Assets, Financial Technology, and Inclusion.
Committee Chairman Patrick McHenry selected French Hill of Arkansas to Chair this newly minted subcommittee. In a Tweet, Hill stated:
“We want to make sure that America is the place for innovation in Fintech and blockchain, and distributed ledger technology is part of that Fintech future.”
This morning, Representative Hill visited with CNBC to share his thoughts on the new Subcommittee and what he hopes to accomplish. In the intro, it was shared that crypto regulation will be a key aspect of the committee’s goals. Asked why people are so polarized about crypto, depending on their political affinity, Rep. Hill had this to say: “I think there is an opportunity for bi-partisan work here on creating a regulatory framework around digital assets,” adding that there are some Democrats that are anti-crypto anything.
“… Blockchain is an important innovation area,” said Hill. “You want that technology to be done here in the United States. We want a regulatory framework that is transparent for developers, investors, and in particular for consumers.”
Hill believes these objectives will bring Republicans and Democrats together for both law enforcement needs as well as innovation.
Hill accepted that some traditional financial services firms will lobby against distributed ledger technology including DeFi, but companies all across the US are looking at blockchain technology to understand how it can improve their operations.
“We want to make sure that America is the place for innovation and Fintech,” said Hill, adding that blockchain is part of this future.
Asked about a spot Bitcoin fund – something several industry participants have attempted only to be denied by the SEC, Hill said that is an issue they want to explore. He also said they want to look at a federal privacy law – a concern for some as blockchain transactions are typically publicly viewable. Hill said they will consider a stablecoin bill that was discussed during the last Congress as well.
“I think you will see us explore what are the ramifications for the securities market …” and work on the commodity side as well – which will be handled by a different committee.
The regulation of crypto exchanges is on the table too, and a priority for the Subcommittee.