Earlier this week, the Digital Assets, Financial Technology, and Artificial Intelligence Subcommittee convened to discuss several bills and discussion drafts aimed at strengthening U.S. leadership in the digital asset sector. The hearing was chaired by Rep. Bryan Steil (WI-01).
The Committee is seeking public feedback on its stablecoins discussion draft. Interested parties can send their comments to fsc119@mail.house.gov. Chair Steil and Coy Garrison from Steptoe LLP highlighted regulatory gaps in the digital asset markets and stressed the importance of congressional action.
Vice Chair Rep. Bill Huizenga (MI-04) and Jonathan Jachym from Kraken Digital Asset Exchange discussed former SEC Chair Gary Gensler's reluctance to offer guidance on securities laws' applicability to digital asset firms. Mr. Jachym pointed out to Rep. Zach Nunn (IA-03) that the SEC has been using a regulation by enforcement strategy for digital assets, citing an instance where Kraken was sued shortly after testifying before relevant committees.
During questioning by Rep. Troy Downing (MT-02), Ji Hun Kim from Crypto Council for Innovation and Jose Fernandez da Ponte from PayPal emphasized that digital assets, including stablecoins, could benefit rural communities if Congress enacts a federal regulatory framework.
Rep. Mike Haridopolos (FL-08) challenged Timothy Massad’s assertion that the SEC and CFTC alone could resolve jurisdictional ambiguities in digital asset markets without legislative intervention, stressing that only legislation can provide lasting clarity.