On Thursday, January 13th, U.S. Representative French Hill of Arkansas announced the launch of a new subcommittee of the House Financial Services Committee. The Subcommittee on Digital Assets, Financial Technology, and Inclusion is focused on creating a bipartisan effort to foster the safe and effective development of FinTech innovation in the United States. Representative Hill has long been an advocate of the crypto industry and was joined by fellow Republican crypto advocates Tom Emmer of Minnesota and Cynthia Lummis of Wyoming in the launch of the subcommittee.
The launch of the subcommittee follows a tumultuous period for digital currencies, including the collapse of crypto exchange FTX and the indictment of its founder, Sam Bankman-Fried late last year. The SEC has stepped up its level of activity following the collapse of FTX, charging crypto lender Genesis and crypto exchange Gemini with the unregistered sale and offering of securities. Senate Democrats have also begun to prepare their own efforts to oversee the crypto industry.
In light of all of this, the launch of Hill's subcommittee is a significant and timely development in the regulation of the crypto and fintech industries. The goal of the subcommittee is to create an environment in which innovation can flourish and investors can be assured of their safety. The subcommittee is seen as an important step in the right direction and has been welcomed by both parties.