• The US House of Representatives held its first joint hearing on cryptocurrency legislation on Wednesday.
• HFSC chairman Patrick McHenry announced that the hearing would take place this month at Consensus 2023 in April.
• The purpose of the hearing was to create laws that would protect consumers while encouraging innovation within the digital assets market.
US Congress Holds First Joint Committee Hearing on Crypto Legislation
The US House of Representatives held its first joint committee hearing related to crypto on Wednesday, aiming to create laws that would protect consumers while encouraging innovation within the digital assets market. The session was held by two committees—the House Financial Services Committee (HFSC) and the House Agriculture Committee—and was titled “The Future of Digital Assets: Measuring the Regulatory Gaps in the Digital Assets Market.”
Purpose of Hearing
HFSC chairman Patrick McHenry stressed to his fellow committee members that “the purpose here is to make law” in order to ensure consumer protection and harness innovation in the digital assets market. Ranking Democrat within the committee, Maxine Waters, also agreed with McHenry that it was time for legislators to get back drafting legislation.
Committee Members’ Views
During their remarks, certain congressmen expressed their uncertainty as to whether digital assets deserve unique legislation or not. Some questioned if such a move would stifle innovation or create an environment of regulatory uncertainty; however, other legislators argued that specific regulations are necessary when dealing with emerging asset classes like cryptocurrencies and stablecoins.
Witnesses at Hearing
A few witnesses were invited to testify before Congress including representatives from Coin Center, a nonprofit research and advocacy center focusing on public policy issues affecting crypto-assets; Circle Internet Financial Ltd., an American financial services company; and Ripple Labs Inc., a global payments company using blockchain technology for secure payments solutions. All three witnesses provided input from their respective organizations about how best lawmakers should proceed with creating regulations pertaining to digital assets without stifling potential growth or punishing legitimate businesses operating in this space.
Conclusion
Ultimately, it appears Congress is still unsure what path they should take when it comes to legislating cryptocurrencies and other digital assets but will continue brainstorming possible solutions moving forward in order to ensure consumer protection while encouraging innovation within this developing ecosystem.