Amidst the continued declines across the crypto currency market, the Republicans in the House of Representatives in the United States intend to create a subcommittee that will be responsible for monitoring the crypto space.
This step indicates that the GOP intends to put the regulation and administration of crypto currencies on its agenda.
Representative Patrick McHenry of North Carolina, who will soon take over as chair of the House Financial Services Committee, recently disclosed his intentions about the House Republicans' crypto subcommittee, according to a report published on January 12 by Politico (1).
During an interview, McHenry underlined how important it was to establish the panel because the committee's structure has "a big hole" in it.
Subcommittee to Oversee Digital Assets
Representative French Hill (R-Ark), who led Republicans in the attempt to test the successful ability of a CBDC, will lead the new subcommittee on crypto assets, financial technology, and inclusiveness. Hill was the initiative's leader in testing the successful ability of a CBDC.
Representative Warren Davidson would serve as his assistant and vice head of the committee (R-Ohio). Particularly noteworthy is the fact that Davidson has never been quiet about crypto currency.
Crypto currency has evolved into a topic that cannot be ignored, which is why Republicans in the United States House of Representatives have established a subcommittee to investigate its regulation and legislation.
In comparison to the past, digital assets have become the primary focus of attention on the financial regulation agenda in Congress.
Before this point, the Financial Services Committee's primary concentration was monitoring the activities of the traditional financial sector, which included banks, Wall Street, and the regulatory bodies that oversaw them.
The crypto currency business saw phenomenal growth, but the market is currently at its lowest point as a direct result of the stunning collapse of the former crypto exchange giant FTX.
It is anticipated that the House Financial Services Committee will hold another hearing regarding the corporation's collapse. This comes after an earlier hearing in December, during which many members questioned whether or not the actions of SBF were purposeful or the result of extreme ineptitude.
They also criticized the "apology tour" that the former tycoon was conducting. Nevertheless, as stated by Texas Representative Al Green:
"R. Bankman- Friend has pretty much suggested that he just made a major error, that he was trying the best he could to be a servant of great service to people, and that he was doing what he thought was the right thing. It's hard for me to accept that we're dealing with people who are so self-righteous and ignorant."
The Committee to Have a Second Hearing Soon
As a result of the corporation's collapse, crypto currency companies have been forced into a defensive stance ever since the authorities began filing fraud accusations against many crypto currency executives.
Moving forward, the new crypto subcommittee that the Republicans established in the House will hold hearings and play a crucial role in developing measures. According to McHenry, one of the council's tasks will be to develop precise guidelines that federal regulators will follow.
In addition, the group will work to formulate rules that would make it easier for underserved populations to benefit from financial technology. In addition, the chair noted that they "have to respond to monitoring and policymaking on a new asset class."