Press Releases

Today, the Subcommittee on Digital Assets, Financial Technology, and Artificial Intelligence, led by Chairman Bryan Steil (WI-01), held a hearing entitled, "American Innovation and the Future of Digital Assets Aligning the U.S. Securities Laws for the Digital Age." This hearing examined the significant legal uncertainty surrounding the application of securities laws to digital assets, which leaves users inadequately protected and stifles innovation. Members also explored which digital asset activities implicate U.S. securities laws, why current regulations may not apply, and how Congress can take legislative action to address these challenges.

Watch the hearing online HERE.  

On the importance of establishing a regulatory framework for digital assets:

• "Last week, this Committee took an important step toward delivering real legislative certainty for payment stablecoins by advancing the STABLE Act. It is incumbent on us to build on that momentum and continue working toward a comprehensive regulatory framework that establishes clear rules of the road for digital asset markets," said Chairman French Hill (AR-02).

• “It is crucial for this Committee to enact legislation that provides clear guidelines for issuers and market participants, facilitates capital formation, and maintains the integrity of both the digital asset ecosystem and the traditional financial system. Through this process, we must ensure that American innovators and entrepreneurs can thrive here at home,” said Subcommittee Chair Steil.

On the opportunities provided by digital assets:

• "Digital assets are going to open the door to endless possibilities for anyone in both financial, and candidly, non-financial services, and provide possibilities for economic growth domestically produced right here in the U.S.," said Rep. Zach Nunn (IA-03).

On the need for a new regulatory approach at the SEC:

• "The SEC under former Chairman Gary Gensler pursued an aggressive enforcement regulatory agenda that sought to extend the SEC's authority over the entirety of the digital asset ecosystem. Treating every digital asset as a security regardless of its purpose risks the United States forfeiting it's leadership in financial technology," said Rep. Troy Downing (MT-02).

Witnesses echoed their support for the work of the Committee.

Rodrigo Seira, Special Counsel, Cooley LLP stated,  "Regulation, technological development, and the flows of financial capital are tightly intertwined and interact in a recurring pattern throughout history. As new technological paradigms such as crypto emerge, they operate in the fringes of the old regulatory regime, where they attract capital which can lead to a speculative frenzy. This frenzy often ends in a rupture that exposes the need for a regulatory realignment. We are living through that moment: it is clear that the current securities regulatory framework is not a viable option to regulate crypto and fails to achieve its stated policy goals. A predictable framework will protect users by requiring appropriate disclosures and consumer protections while ensuring that companies can innovate without the constant fear of arbitrary enforcement actions."

Tiffany J. Smith, Partner and Co-Chair of the Blockchain & Cryptocurrency Working Group, WilmerHale stated, "While the Securities and Exchange Commission (“SEC”) has taken steps within its jurisdiction to provide regulatory clarity, these actions alone are not sufficient. I believe that Congressional action is necessary to have true regulatory clarity for the digital assets industry. Indeed, the current lack of regulatory clarity has caused harm to both crypto-native and traditional financial services firms. Crypto-native firms have expended significant resources trying to determine, first, if they were required to register with the SEC, and if so, how they could comply with the applicable complex regulatory requirements. More recently, a number of crypto firms have been the subject of SEC investigations and spent significant resources defending these actions. Some have decided to settle these actions by discontinuing a product line, or worse, ceasing operations in the United States. Many traditional financial services firms, which are heavily regulated, have decided not to offer digital asset products or services altogether because of this regulatory uncertainty."

Jake Werrett, Chief Legal Officer, Polygon stated, "In recent years, blockchains have emerged as one of the most transformative architectures of the Internet. In 2008, Bitcoin marked the first decentralized Internet-native currency. Since then, the evolution of blockchain — accelerated by Ethereum and countless networks that followed — has expanded far beyond digital currency. What began as a monetary innovation has become a foundation for decentralizing all forms of native digital assets, shifting control over information, ownership, and privacy back to individuals. ...We have an opportunity to enact law that embraces innovation, while protecting investors, encouraging capital formation, and maintaining fair, efficient, and orderly markets. We cannot afford to be left behind, or to push valuable innovation offshore. Drafting and passing thoughtful blockchain legislation will maintain the strength of our economy, shore up the dollar as the global currency via dollar-backed stablecoins, and maintain our country’s position as a global leader."