House Republicans launching digital asset subcommittee after troubled year for cryptocurrency industry
Cryptocurrencies were down across the board in 2022 amid FTX's implosion
FTX sheds light on possible regulatory holes as lawmakers look to crack down on crypto
Brown Rudnick partner Hailey Lennon discusses the possible regulatory holes brought to light by FTX's collapse and lawmakers' push for increased crypto regulations.
Republicans on the House Financial Services Committee announced Thursday that they are launching a new subcommittee on cryptocurrency after a troubled year for the industry.
Rep. French Hill, R-Ark., will serve as the inaugural chairman of the Subcommittee on Digital Assets, Financial Technology and Inclusion.
"At a time of major technological advancement and change in the financial sector, it is our job to work across the aisle and promote responsible innovation while encouraging FinTech innovation to flourish safely and effectively in the United States," Hill said in a statement.
An illustration picture shows gold plated souvenir cryptocurrencies. (JUSTIN TALLIS/AFP via Getty Images / Getty Images)
The new panel's responsibilities will include providing directives to federal regulators who oversee the burgeoning industry and cultivating policies to reach underserved communities, according to Hill.
ASSOCIATES OF FTX FOUNDER SAM BANKMAN-FRIED PLEAD GUILTY TO WIRE FRAUD, OTHER CHARGES FILED BY SEC
Some lawmakers and regulators have been clamoring for more oversight of the digital asset industry after a year that saw the implosion of FTX, which was once the second-largest exchange in the world.
Former FTX chief executive Sam Bankman-Fried arrives to enter a plea before US District Judge Lewis Kaplan in the Manhattan federal court, New York, January 3, 2023. (Ed Jones/AFP via Getty Images / Getty Images)
Sam Bankman-Fried, FTX's founder and former CEO, was arrested last month and pleaded not guilty to fraud, money laundering, and campaign finance violations.
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Cryptocurrencies also plummeted across the board last year. Bitcoin, the largest cryptocurrency by market capitalization, dropped below $20,000 by the end off 2022 and lost more than 60% of its value.