U.S. House of Representatives Establishes New Subcommittee on Crypto

The U.S. House of Representatives has created a new congressional subcommittee focused on digital assets.

The Subcommittee on Digital Assets, Financial Technology and Inclusion will operate under the House Financial Services Committee and will be the first in the U.S. specifically focused on digital assets.

The subcommittee will be chaired by Republican Congressman French Hill.

The new subcommittee will provide rules for federal regulators on the topic of digital currencies, develop policies to promote digital financial technology and strengthen diversity and inclusion in the industry.

Hill said in a statement, “At a time of major technological advancement and change in the financial sector, it is our job to work across the aisle and promote responsible innovation while encouraging FinTech innovation to flourish safely and effectively in the United States.”

The formation of the new subcommittee follows a House Financial Services Committee inquiry into the multibillion-dollar collapse of the Bahamas-based crypto exchange FTX.com.

The incoming chair of the committee, Congressman Patrick McHenry, said that the Securities and Exchange Commission had not done enough against bad actors in the crypto industry.

This inquiry was held amid a flurry of legislative activities in the U.S. as lawmakers rushed to address perceived regulatory shortcomings following the FTX collapse.

In December, Senator Elizabeth Warren introduced a bill that would require U.S. crypto businesses to follow the same know-your-customer rules as banks to prevent money laundering.