Today, the House Financial Services Committee, under the leadership of Chairman Patrick McHenry (NC-10), is conducting a hearing to examine the influence of technology and innovation on the future of finance. Prior to this session, Chairman McHenry and Ranking Member Maxine Waters (CA-43) introduced two bipartisan measures that emphasize the role of artificial intelligence in the financial services and housing sectors.
Chairman McHenry shared personal insights during his opening remarks, reflecting on his father's entrepreneurial journey: “Forty years ago, my dad started a small lawn mowing business... Like every other entrepreneur, my dad needed access to affordable capital to grow and scale his business.” He highlighted how his father relied on what was then considered fintech—a charge card—to support his business.
McHenry emphasized that stories like his father's are common among entrepreneurs today. He noted, “America was built on the ingenuity of generations of entrepreneurs—like my dad—building companies, innovating, and supporting workers.” However, he expressed concern that America is now lagging behind Europe in technological advancements for the first time in over a century.
The Committee's efforts aim to unlock new opportunities through policies supporting innovation across various areas including capital formation, digital assets, consumer finance, and artificial intelligence. On capital formation, McHenry pointed out regulatory challenges that have limited IPOs and investment opportunities for everyday Americans. The Committee has worked on bipartisan bills such as the Expanding Access to Capital Act to address these issues.
Regarding digital assets, McHenry stated that “digital assets and blockchain technology promise to revolutionize the way Americans participate in our financial system.” He criticized the SEC’s enforcement approach which he believes has driven digital asset innovation overseas. The passage of FIT21 aims to establish a clear regulatory framework for this sector.
In consumer finance, McHenry discussed how technological advances are enhancing financial products but warned against excessive regulation stifling innovation. He mentioned efforts like True Lender and Valid-When-Made policies designed to support bank-fintech partnerships.
On artificial intelligence, McHenry highlighted collaborative efforts with Ranking Member Waters through an AI Working Group which led to introducing bipartisan bills recognizing AI's growing impact in finance and housing industries.
He concluded by asserting that while much progress has been made in setting policy terms for future debates, continued action is necessary: “I hope many of these initiatives are seen through to enactment next Congress.”