- The House Financial Services Committee, led by Chairman Patrick McHenry, is holding a hearing on the future of the digital asset ecosystem, considering statutory frameworks for digital asset regulation and stablecoin issuance.
- The Committee aims to provide robust consumer protections while allowing financial innovation to flourish in the U.S., with the understanding that digital assets are no longer a new technology and are used globally.
In a significant move towards the future of the digital asset ecosystem, the House Financial Services Committee, under the leadership of Chairman Patrick McHenry, is conducting a hearing to consider the establishment of statutory frameworks for digital asset regulation and stablecoin issuance. The primary objective of these discussions is to ensure robust consumer protection while fostering financial innovation in the United States.
The Committee’s initiative comes in response to the rapid global adoption of digital assets. As Chairman McHenry emphasized, “Digital assets are now no longer a new technology—they are used all over the world. America has always led technology invention and, if not invention, implementation. Today we are at risk of falling behind competitors around the globe.”
The hearing is the culmination of a bipartisan effort over several months, involving an unprecedented joint venture with the Agriculture Committee. The discussion draft released earlier this month aims to bridge the gaps between securities and commodities laws, providing much-needed clarity for digital assets. The draft bill adheres to the principle of ‘same risk, same regulation,’ while modernizing the regulatory framework to better match this innovative technology.
The draft bill sets out stringent requirements for trading platforms regarding the segregation of customer assets, similar to most traditional intermediaries. It also addresses how digital asset issuers raise capital for their projects, with the aim of maintaining the U.S.’s strategic advantage of having the deepest and most liquid capital markets in the world.
Furthermore, the draft bill enhances the Securities and Exchange Commission’s (SEC) ability to detect and punish fraudulent actors and activities. It establishes requirements for digital asset trading platforms, ensuring Americans and their assets are protected. The draft bill also provides a workable path for trading platforms to register with the SEC and/or the Commodity Futures Trading Commission (CFTC).
Chairman McHenry concluded by emphasizing the critical moment for American dynamism, stating, “We can choose the side of financial freedom, innovation, inclusion, and American competitiveness and important consumer protections at the same time. Or we can let this moment pass us by and surrender our leadership of the global financial system to other countries.”
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