Brown Rudnick partner Hailey Lennon discusses potential regulatory holes brought to light by the FTX collapse and the push by lawmakers to increase crypto regulations.
Republicans on the House Financial Services Committee announced Thursday that they will launch a new cryptocurrency subcommittee after a difficult year for the industry.
Rep. French Hill, R-Ark., will serve as the inaugural chair of the Subcommittee on Digital Assets, Financial Technology and Inclusion.
"At a time of great technological breakthrough 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 illustrative image shows gold-plated souvenir cryptocurrencies. (JUSTIN TALLIS/AFP via Getty Images/Getty Images)
The responsibilities of the new panel will include providing directives to federal regulators who oversee the booming industry and cultivate 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, once the world's second-biggest exchange.
Former FTX CEO Sam Bankman-Fried arrives to plead guilty before US District Judge Lewis Kaplan in federal court in Manhattan, New York on January 3, 2023. (Ed Jones/AFP via Getty Images/Getty Images)
Sam Bankman-friedthe founder and former CEO of FTX, was arrested last month and pleaded not guilty to fraud, money laundering and campaign finance violations.
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Cryptocurrencies also crashed across the board last year. Bitcoin, the largest cryptocurrency by market capitalization, fell below $20,000 at the end of 2022 and lost more than 60% of its value.
