McHenry at Hearing on the Future of Finance: We are Trying to Unlock a New Era of Innovation and Opportunity
Washington,
December 4, 2024 -
Today, the House Financial Services Committee, led by Chairman Patrick McHenry (NC-10), is holding a hearing to explore how technology and innovation are shaping the future of finance.
Ahead of today’s hearing, Chairman McHenry and Ranking Member Maxine Waters (CA-43) introduced two bipartisan measures highlighting the impact of artificial intelligence (AI) on the financial services and housing industries.
Watch Chairman McHenry’s opening remarks here.
Read Chairman McHenry’s opening remarks as prepared for delivery:
“Forty years ago, my dad started a small lawn mowing business.
“I’ll never forget the struggles he went through to get his small business off the ground.
“Like every other entrepreneur, my dad needed access to affordable capital to grow and scale his business.
“When other sources of capital dried up, my dad relied on the fintech of his day—a charge card, now known as a credit card—to grow his business and support his workers.
“While my dad’s small business didn’t change the world, it changed my world.
“It’s my family’s story that drove me to dedicate my work on this Committee to policies that embrace the role of technology and innovation in building a more vibrant and inclusive financial system.
“And it isn’t a unique story—we see similar ones playing out across the marketplace today.
“America was built on the ingenuity of generations of entrepreneurs–like my dad–building companies, innovating, and supporting workers.
“But today—for the first time in more than a century—America is falling behind Europe in technological invention, innovation, and adoption.
“Under my work on this Committee and our Committee work, we are trying to unlock a new era of innovation and opportunity that will allow families across the country to realize their vision of the American dream.
“From capital formation to digital assets to consumer finance to artificial intelligence, the Financial Services Committee has led the effort to ensure the U.S. remains the global leader in innovation.
“Let’s start with capital formation, which is essential to creating long-term economic growth.
“American public markets have been constrained by onerous regulatory requirements. This has led to a dearth of IPOs—leaving Americans with fewer investment choices.
“Everyday investors have also missed out on the high growth stages of companies as firms stay private for longer. The accredited investor standard reserves these high yield investments for those who are already wealthy.
“The Committee has prioritized capital formation by strengthening our public markets, creating new avenues for entrepreneurs to raise capital, and increasing opportunities for more Americans to invest in our private markets.
“These efforts culminated in more than a dozen bipartisan bills and Republicans’ Expanding Access to Capital Act, which all passed the House this Congress.
“Second, digital assets and blockchain technology promise to revolutionize the way Americans participate in our financial system by democratizing networks, reducing friction, and lowering costs.
“The lack of a clear rules of the road and the SEC’s regulation by enforcement agenda over the last four years have pushed the digital asset ecosystem overseas.
“In an historic first, the House passed FIT21 this Congress to provide the clear regulatory framework and robust consumer protections the industry desperately needs to thrive in the U.S. It passed with overwhelming bipartisan support, including from 71 Democrats.
“Third, consumer finance. Financial institutions are increasingly utilizing technology to develop innovative products and services, expand access to credit, and increase efficiency across their operations.
“Unfortunately, overzealous regulators are stifling this innovation to the detriment of small businesses and consumers.
“Republicans have taken action to ensure our regulatory environment fosters—rather than smothers—this responsible innovation.
“We have worked to provide clarity for bank-fintech partnerships through True Lender and Valid-When-Made policies, in addition to advancing legislation to create innovation-focused regulatory sandboxes. The latter of which has proven successful in my home state of North Carolina.
“Fourth, artificial intelligence. Earlier this Congress, Ranking Member Waters and I formed the bipartisan AI Working Group.
“We recently introduced two bipartisan bills acknowledging the growing use of AI in the financial services and housing industries. These are the first of what I hope will be many legislative products resulting from the Working Group’s efforts.
“Here in Washington, there’s a lot of talk about innovation, but not nearly enough focus. The House Financial Services Committee has been the exception.
“Time and again, we have matched our rhetoric with action—and it has largely been bipartisan.
“When I became Chairman, I said these two years of policy would set the terms of debate for the next decade. This body of work shows it.
“But as policymakers, setting the terms of debate is not the end of our work.
“I hope many of these initiatives are seen through to enactment next Congress.”
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