Republicans want more oversight of crypto market

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The crypto market is set to come under increased scrutiny from the U.S. House of Representatives, with the formation of a new subcommittee. 

A new subcommittee

According to a report by Politico, North Carolina Representative Patrick McHenry, chair of the House Financial Services Committee, plans to create the subcommittee to fill a “big hole” in the committee’s current structure. 

The new panel, led by French Hill of Arkansas and Warren Davidson of Ohio, will discuss issues related to digital assets, financial technology, and financial inclusion.

McHenry, who has placed crypto regulation at the top of his legislative agenda, stated that the group will be responsible for crafting policies that support financial technology to reach underserved communities and providing clear norms among federal regulators. The subcommittee will hold hearings and play a key role in bill development.

Crypto dominates the financial agenda

The establishment of the digital asset group shows how cryptocurrency has come to dominate the financial regulatory agenda in Congress. In the past, the Financial Services Committee was primarily concerned with the oversight of banks, Wall Street corporations, and their regulators. 

However, in recent years, the digital asset industry has grown as a lobbying force, with companies attempting to improve the regulatory environment and gain important allies from both parties.

New FTX hearing in 2023

After a steep drop in recent months and the collapse of the once-dominant FTX, which spurred fraud charges against the exchange’s top executives, crypto businesses are now playing defence. 

The House Financial Services Committee is set to hold another hearing under McHenry to investigate the collapse of bitcoin exchange FTX, with McHenry stating that lawmakers will further discuss the bankrupt crypto business in 2023.

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Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.