Patrick McHenryChairman

Washington, March 9, 2023 -

“Today, I’m very excited to hold the inaugural hearing of the new Subcommittee on Digital Assets, Financial Technology and Inclusion.

“To start, I want to thank Chairman McHenry for asking me to lead this new subcommittee, and for his leadership in recognizing the need to address the topic of digital assets.

“I also want to thank Ranking Member Waters for her foresight in holding that first Libra hearing in 2019, creating the Task Forces on FinTech and AI, and her continued engagement and willingness to work in a bipartisan manner.

“Finally, I’m looking forward to working with my good friend from Massachusetts and the Ranking Member of this subcommittee, Congressman Lynch.

“He’s always a thoughtful partner and we’re reprising our roles after previously leading the FinTech Task Force together.

“To all the members of this committee, no matter what your views are about digital assets, it’s imperative that we recognize the unique role of Congress to legislate, and that no amount of enforcement actions or regulatory guidance can ever replace that.

“As a legal matter, only Congress can establish the regulatory framework for digital assets that I strongly believe we need in this country.

“That’s why this subcommittee is holding its first hearing to examine the Administration’s recent actions on digital assets.

“Let me be very clear: this hearing is not a partisan attack on the SEC or the banking regulators.

“We will hold other hearings to discuss comprehensive policies, as well as about the fraud and the failure of FTX and Sam Bankman-Fried, and the millions of people hurt by his dishonesty and scams.

“But it’s absolutely critical that we first discuss the scope and significance of the recent regulatory pronouncements and supervisory failures over the past year.

“By assessing the regulatory gaps, supervisory failures, and enforcement actions, we can build the case for a shared, bipartisan vision of a regulatory framework.

“This shared goal is to protect investors, foster innovation, and ensure that America continues to lead rather than follow in this space.”

“But that means Congress has to do the hard work of working across the aisle to reach a consensus—not just posturing or sticking our heads in the sand.

“That’s why I was glad to see Ranking Member Waters call on the Treasury, Fed, CFTC, and the SEC to get together with Congress and address digital asset regulation. We can’t have the agencies trying to front-run the legislative branch.

“Last Congress, this committee under then-Chair Waters and Ranking Member McHenry made good progress on payment stablecoin legislation, and I believe we should work together on a product that can pass out of this committee with bipartisan support.

“The Treasury and Fed were constructive partners in that process, and we want that to continue.

“That being said, payment stablecoins are just one part of the broader digital asset ecosystem, and I’m hopeful we can bring customer protections that exist in the current financial regulatory structure to digital assets.

“I’m a strong proponent of the approach of ‘same risks, same activities, same rules,’ and I believe we should create a functional framework tailored to the specific risks of digital assets.

“The fact is, we must: support technological innovation that promotes the responsible development and use of digital assets; ensure appropriate controls and accountability for transparency, privacy, and security; give no quarter to fraudsters, scammers, and criminals; and reinforce our leadership in the global financial system in order to maintain U.S. competitiveness.

“These are the Administration’s own principles articulated in its Executive Order, though their recent actions seem to conflict with these principles.

“I look forward to hearing from our witnesses about the impact of the Administration’s approach and how Congress can work together on a path forward. I yield back.”

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