ICYMI: Financial Services Digital Assets Subcommittee Holds First Hearing, Requests Feedback from Stakeholders on Stablecoins Bill
Washington,
February 13, 2025 -
Earlier this week, the Digital Assets, Financial Technology, and Artificial Intelligence Subcommittee, chaired by Rep. Bryan Steil (WI-01), held a hearing examining several bills and discussion drafts to cement U.S. leadership in the digital asset space.
The Committee is soliciting feedback from the public on its stablecoins discussion draft. Interested members of the public may send their comments to: fsc119@mail.house.gov.
Chair Steil and Coy Garrison, Partner, Steptoe LLP, emphasized the existing regulatory gaps in the digital asset markets and underscored the need for Congress to act. To watch Rep. Steil's full remarks, click here.
Vice Chair of the Financial Services Committee Rep. Bill Huizenga (MI-04) and Jonathan Jachym, Deputy General Counsel and Global Head of Policy & Government Relations, Kraken Digital Asset Exchange, discussed former SEC Chair Gary Gensler’s reluctance to provide the digital asset ecosystem with guidance or direction on the applicability and non-applicability of securities laws to digital asset firms. To watch Rep. Huizenga's full remarks, click here.
Mr. Jachym highlighted to Rep. Zach Nunn (IA-03), how the SEC employed a regulation by enforcement strategy for digital assets, going so far as to sue Kraken the day after they testified before the House Financial Services and Agriculture Committees about the lack of a viable regulatory pathway for centralized digital asset exchanges. To watch Rep. Nunn's full remarks, click here.
During questioning from Rep. Troy Downing (MT-02), Ji Hun Kim, President and Acting CEO, Crypto Council for Innovation and Jose Fernandez da Ponte, Senior Vice President and General Manager of Blockchain, Crypto and Currencies, PayPal, outlined how digital assets, including stablecoins, are not just valuable to large cities but can bring real benefits to rural communities if a federal regulatory framework is enacted by Congress. To watch Rep. Downing's full remarks, click here.
Rep. Mike Haridopolos (FL-08) questioned Timothy Massad’s, Research Fellow and Director of Digital Assets Policy Project, Kennedy School of Government, Harvard University, claim that the SEC and CFTC alone, or through a self-regulatory organization, can end the ambiguity surrounding which regulator has jurisdiction over digital asset markets. Rep. Haridopolos emphasized that lasting regulatory clarity for the digital asset ecosystem can only come from legislation. To watch Rep. Haridopolos' full remarks, click here.
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