The move was announced by Republican Patrick McHenry, who has headed efforts to regulate the crypto industry.
The crypto industry is set to be monitored by a new subcommittee helmed by Republicans in the United States House of Representatives. A leading political newspaper reported that the subcommittee would emphasize regulation of the industry which is going through difficult times. Patrick McHenry, who would soon take over as the new Financial Services Chairman, announced the same while declaring plans for various subcommittees and their heads.
The new subcommittee on digital assets will be headed by Rep. French Hill, who will serve as its chair. Rep. Warren Davidson will be the vice chair. Both Hill and Davidson have been crypto proponents who have lent voices for central bank digital currencies and crypto. Though the Financial Services Committee has been mostly focused on regulating other financial institutions like banks and Wall Street companies, crypto has emerged as one of the most important assets for regulation in recent times.
Major crypto companies have led campaigns to establish regulatory frameworks for the industry, which has received severe criticism in recent months due to the bankruptcy of a major exchange, blocking billions of investors’ money. The industry has also been subject to several frauds and scams without a definite regulatory system. The new subcommittee will be a driving force in drafting bills and holding hearings for the crypto space. Patrick McHenry said, “We’ve got to respond for oversight and policymaking on a new asset class,” indicating his high priority for crypto regulation.