Congressman Hill to “ensure” the US is the place for blockchain innovation

by · January 26, 2023

The chairman of the newly formed US Congressional Subcommittee on Digital Assets has promised progressive crypto regulations to ensure that “America is the place for innovation in fintech and blockchain.”

Speaking on CNBC’s Squawk Box on January 26, Congressman French Hill gave some of his first insights into what’s expected for crypto regulation in the country.

The Financial Services Subcommittee on Digital Assets, Financial Technology and Inclusion, chaired by Hill, was formed on January 12 with the task of “identifying best practices and guidelines that continue to strengthen diversity and inclusion in the digital asset ecosystem. “

During the interview, Hill said Bitcoin (BTC) wasn’t quite ready to be a real-time payments industry yet, but added that “we want to make sure America is the place for innovation in fintech and blockchain is part of the future.”

Asked about the possibility of a spot Bitcoin exchange-traded fund (ETF), Hill commented that the new subcommittee wants to explore that possibility as well.

The SEC has repeatedly rejected applications for a spot Bitcoin ETF, including one from the world’s largest crypto asset manager, Grayscale.

Other areas of the subcommittee’s focus will be related to federal privacy legislation, a stablecoin bill and the implications for the securities market, while working with the Senate on the commodity aspect of the crypto industry.

He said crypto trading and exchanges needed to be “supervised,” but did not specify which agency would do so.

“All of that is on the table, and all of that is going to be a priority this year,” he said.

Related: The next House committee chair reintroduces the crypto innovation bill

The host suggested that the Securities and Exchange Commission (SEC) has been dragging its feet, asking “as long as Gary Gensler is there, do you see any progress being made?”

Hill said Gensler was “the beat cop” last year and claimed to be an expert in this area, adding:

“So we will invite him up to Congress to tell us what he knows, what he recommends in this area, and what he did last year when we had so many challenges for our investors and consumers.”

The comments and outlook are positive when placed in the context of the SEC which has been charged by senators to regulate by enforcement and conduct extrajudicial investigations of the crypto industry.