A bill passed by the U.S. House of Representatives this week would create a digital asset working group designed to promote collaboration between regulators and the private sector to encourage innovation, according to a press release from Financial Services Republicans.
The bipartisan Eliminate Barriers to Innovation Act requires the Securities and Exchange Commission and the Commodity Futures Trading Commission to set up the working group.
“Digital assets have untold potential benefits for consumers, American businesses, and our standing as a world leader in developing these technologies. This working group will provide insight into how we can work with innovators to unleash these benefits,” said Rep. Patrick McHenry of North Carolina, the Republican leader of the House Financial Services Committee and one of the sponsors of the bill.
“As this technology continues to develop and deploy, it is extremely important that we consider the possible vulnerabilities that the wider adoption of digital assets might present while addressing the lack of clarity in the regulation of these financial instruments to mitigate potential harms that may occur,” said Rep. Stephen Lynch, a Democrat who leads the Financial Technologies Task Force. “This bill will create critical collaboration between the S.E.C., the C.F.T.C. and Congress that will ultimately help create fair and transparent markets.”
In addition to appointees from the Commission, the working group will include representatives from FinTech companies, financial firms and small businesses.
Congress expects the group to produce a report within a year that includes an analysis of the domestic regulatory framework as well as developments in other countries around digital assets. The report must also include thoughts on best practices to cut back on fraud, protector investors and help with Bank Secrecy Act compliance.
A recent PYMNTS report explores the new emphasis on regulatory oversight in the world of cryptocurrency.
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