U.S. Rep. Patrick McHenry (R-NC) is urging U.S. Rep. Maxine Waters (D-CA), chair of the House Financial Services Committee, to review the current regulatory environment for digital assets in future hearings on the subject.
“I write to commend you on last month’s hearing titled: “Digital Assets and the Future of Finance: Understanding the Challenges and Benefits of Financial Innovation in the United States.” I appreciated the opportunity to work together and believe the hearing struck the right tone for members to better understand this nascent industry and the issues raised by digital assets. It also reaffirmed the complexity of digital assets, only scratching the surface on the breadth of issues that the Financial Services Committee must examine to ensure the policies Congress pursues will nurture innovation in the United States. As you look to schedule additional hearings, I believe it is critical that we thoroughly review the current environment and prioritize the issues that must be addressed,” McHenry, the ranking member on the Committee, wrote in a letter to Waters.
McHenry pointed out that digital assets have the potential to revolutionize the payment system. Given its importance, McHenry said oversight should not be ad hoc, rather, there should be broad, bipartisan consensus among policymakers as to the appropriate policy solution.
“Central to this discussion is the treatment of certain digital assets. While both Chairmen Behnam and Gensler have been extremely vocal, neither the Commodity Futures Trading Commission (CFTC) nor the Securities and Exchange Commission (SEC) positions on digital assets is based in statute,” McHenry wrote. “The inconsistent treatment and jurisdictional uncertainty have only exacerbated confusion in the marketplace. As a result, market participants will look outside the United States. We should not cede these important issues to regulators such as SEC or CFTC, or to the judicial branch, to determine. This Committee should do its work to appropriately categorize these assets and determine the rules that will govern their use.”
He also said the Committee should further examine whether increased federal regulation of cryptocurrency trading platforms is necessary or appropriate.
“We must work together to create opportunities that allow these technologies to flourish without stifling them in their infancy. At the same time, we must ensure that both consumers and investors have the information they need to make good decisions. These are not decisions that should be made by regulators but by policymakers,” he added.