A new panel led by Republican lawmakers was announced on Thursday, aimed at overseeing the cryptocurrency industry. The Subcommittee on Digital Assets, Financial Technology and Inclusion, led by Representative French Hill (R-AR), aims to provide “clear rules of the road” for federal regulators and promote financial technology to underserved communities, as well as strengthen “diversity and inclusion” in the crypto industry.
This move could be seen as a positive development for the crypto industry, as it could bring much-needed regulatory clarity and oversight to the market. Clear regulations can provide a sense of stability and legitimacy, which can attract more mainstream investors and businesses to the space. Additionally, the panel’s focus on promoting financial technology to underserved communities could help increase access and adoption of digital currencies, particularly among marginalized groups.
However, the panel may also present challenges for the crypto industry. The subcommittee’s vice chairman, Representative Warren Davidson (R-OH) is a supporter of the crypto industry, but has criticized the SEC on the potentially “overburdensome” information-seeking requests it directed towards crypto companies, including FTX. This could mean that the panel may not be in favor of heavy-handed regulations that could stifle innovation in the space.
Another challenge the panel may face is getting its policies beyond a Democrat-controlled Senate, which is working on its own crypto-related laws. This could make it difficult for the panel to pass legislation and bring about real change in the industry.
While the formation of this panel is a significant development for the crypto industry, it remains to be seen how successful it will be in regulating the market and bringing about real change. The industry will be watching closely to see how the panel’s policies take shape, and how they will impact the future of digital currencies.