House Republicans Establish Committee to Shape Cryptocurrency Policy

With the Republicans now in control of the House of Representatives, the focus is on setting the agenda for crypto. Financial Services Committee Chair Patrick McHenry has established a Subcommittee on Digital Assets, Financial Technology, and Inclusion to develop policies for technologies like cryptocurrency. Led by Rep. French Hill, the panel’s goal is to create clear regulations for federal regulators, promote financial technology in underserved communities, and enhance diversity and inclusivity in digital assets.

McHenry explained to Politico that the subcommittee was created to address a significant gap in the Financial Services Committee’s approach to crypto issues. Crypto regulation is McHenry’s top legislative priority, with panel chair Hill leading the GOP’s inquiry into a potential central bank-backed cryptocurrency.

Amidst regulatory challenges in the cryptocurrency space, there is a push for a cohesive approach. While bodies like the Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) agree on the applicability of existing laws to digital assets, there is a debate on which agency should take the lead. A bill proposed by Senators to establish a clear regulatory framework has yet to progress beyond committee stages.