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Cmte Financial Services (R)
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Hill Delivers Remarks at Hearing to Break Down the Future of Decentralized Finance
Washington, Sep 10 -
Today, the House Financial Services Subcommittee on Digital Assets, Financial Technology and Inclusion, led by Chairman French Hill (AR-02), is holding a hearing entitled “Decoding DeFi: Breaking Down the Future of Decentralized Finance.” Watch Chairman Hill’s opening remarks here. Read Chairman Hill’s opening remarks as delivered: “Welcome back, members and staff, to Capitol Hill following our August work period. Today we are going to discuss decentralized finance. “After the FIT21 legislation passed with broad, bipartisan support, I wanted this subcommittee to explore emerging topics like tokenization and DeFi. “As we consider how blockchains can be used in finance, we must continue expanding our knowledge of the possible costs and benefits as it relates to DeFi. “Decentralized finance envisions a financial system that is permissionless, transparent, efficient, and built on top of blockchain networks. It’s based on the fundamental idea that individuals should have the freedom to transact without the fear of illegal financial surveillance or abuse by governments. “By substituting intermediaries for autonomous, self-executing code, decentralized finance can shift the way the financial markets and transactions are currently structured and governed. A peer-to-peer future where the Canadian prime minister of the future can’t freeze off your bank account just for going to a protest. “But whether it’s artificial intelligence or digital assets, we cannot legislate thoughtfully or do oversight of the regulatory agencies if we don’t understand it. And DeFi is not only complex but cutting edge, changing, and a completely different way of working. “But at the end of the day, decentralized finance is not a person or a company. It’s a technology—one that connects people together to reimagine how we transact with one another. “So, today’s hearing is designed to take a deep dive into some core concepts behind DeFi, and I’d like members on both sides of the aisle to approach it with an open mind. “We’ll hear from our witnesses about this technology, how it works, the potential benefits and risks, and the legal and regulatory implications. “It’s important to remember that our regulatory and legal frameworks were designed for a financial system with centralized intermediaries. It doesn’t contemplate the decentralized, peer-to-peer ecosystem made possible with digital assets and blockchain. “That’s why jurisdictions like the European Union have chosen to explicitly carve out DeFi in their digital asset legislation so they can continue to better understand it. “Rightfully, we took the same approach in drafting our FIT21 legislation here in the House, which directed the Treasury, SEC, and CFTC to study this issue together and report back to Congress on the implications and their recommendations. “Contrast that with the Biden-Harris Administration, which uses rulemaking and enforcement actions to go after DeFi and threaten its existence and the future of its use in the United States. “Now that this Committee has moved the historic, bipartisan FIT21 legislation, it’s important that together we assess DeFi and study the most effective way forward. “This hearing is not just about smart contracts and decentralized protocols; it’s about how decentralized, peer-to-peer technology can preserve individual freedom and improve our financial services for businesses and consumers alike. “Together, we’ll take another step in our work on a regulatory landscape that supports this transformative technology. “I encourage everyone on this subcommittee to engage in an informative and open-minded dialogue with our esteemed witnesses today to better understand how Congress can help Americans access and leverage this technology in a safe and secure manner. “I am grateful to our witnesses that are on our panel today for sharing their wealth of knowledge, and I look forward to the discussion.” ###