House Republicans to create a new crypto subcommittee to oversee the industry
The Republicans who now control the United States House of Representatives are reportedly planning to establish a new subcommittee that will be dedicated to overseeing matters related to cryptocurrencies during this session of Congress
According to a report from Politico, incoming Financial Services Chair Patrick McHenry (R-N.C.) said in an interview on Thursday that he plans to create the panel because he believes there is “a big hole in how we structure the committee” as it spends more time dealing with crypto topics.
McHenry has been one of the most vocal members of Congress when it comes to prioritizing issues related to financial technology and has vowed to put crypto regulation at the top of his legislative agenda. This latest announcement comes amid broader plans to restructure Financial Services subcommittees and their chairs.
Arkansas Representative French Hill, who has spearheaded Republican efforts to explore the viability of a central bank digital currency (CBDC), has been selected to chair the new subcommittee on digital assets, financial technology and inclusion. Ohio Representative Warren Davidson will serve as the subcommittee’s vice chair.
The creation of the new digital asset panel comes as cryptocurrencies have been receiving increasing attention from regulators around the world following the collapse of FTX. As lobbying for the digital asset industry has increased in recent years, so too has the scrutiny being placed on crypto firms looking to operate in the U.S.
According to McHenry, the new subcommittee will hold hearings and be tasked with providing clear rules among federal regulators and developing policies that promote financial technology to reach underserved communities.
“We’ve got to respond for oversight and policymaking on a new asset class,” he said.
This decision by McHenry is one of the first major moves made by House Republicans since they took majority control of the 118th Congress on Jan. 3. The legislative body was unable to adopt rules, determine committee assignments, and pass legislation for four days at the start of the new session due to the delay in Republicans electing a House Speaker. It took 15 rounds of voting before California Representative Kevin McCarthy was officially elected to the position.
The House Financial Services Committee under McHenry is expected to hold a second hearing exploring the November collapse of FTX following its first hearing into the matter on Dec. 13. After the December hearing, McHenry stated that lawmakers would gather again to discuss FTX sometime in 2023.
