House Republicans Move To Regulate Crypto Industry With New Subcommittee

The Republican Party, which won a majority in the US Congress late last year, has begun to form new committees. One of them will be a subcommittee on the regulation of cryptocurrencies.

North Carolina Representative and Financial Services Committee Chairman Patrick McHenry said the new subcommittee would “close a big hole” in the committee’s structure. The group will focus on issues related to digital assets, fintech and financial inclusion.

The subcommittee will be chaired by Rep. French Hill from Arkansas, and Rep. Warren Davidson from Ohio will be vice chair.

Hill said in a statement that the unregulated nature of the crypto industry became a major problem at the end of last year following the crash of FTX in November. Sam Bankman-Fried, founder of FTX, was arrested last month on fraud charges and released on $250 million bail while he awaits trial.

“We need to be in charge of overseeing and drafting legislation for this new asset class,” McHenry said.