Patrick McHenry is a ranking member of United States House of Representatives Financial Services Committee. He believes that the conversation has drifted away from financial technology and must return to real world problems. He is currently in negotiations to create legislation that will at least provide more clarity on stablecoins.
McHenry stated that there is currently no U.S. federal definition for digital assets or stablecoins. He called the situation “retrograde” and spoke highly about the bipartisan nature and tradeoffs made between him and Waters.
“We agree to the asset, that’s, a narrowly defined group of assets, 1:1 backing and no leverage. [..] Next, we have more complicated conversations.
McHenry spoke at DC Fintech Week and identified “the means” that stablecoin is held, as well as regulating wallets, and determining the federal regulator. He said that these decisions are “less science and more art.” McHenry said that the resulting draft was “a pretty ugly baby,” but that it could grow into something better.
Related: Republican lawmakers demand answers from Fed vice-chair on digital dollars
McHenry stated that crypto regulation would be a priority if McHenry is elected chair of the Financial Services Committee following the midterm elections. If the Republican party wins the House majority, McHenry could be elected chair of the committee. McHenry has long been an advocate for bipartisanship in crypto legislation.
Panel discussion with Patrick Collison & Patrick McHenry on fintech’s post-pandemic scorecard. #DCFintechWeek pic.twitter.com/cPASNRJBCN
Michael Frye (@_mfrye), October 12, 2022
Waters, who spoke briefly at the conference a day before, also addressed the issue of digital wallets and stablecoin. Waters stressed the importance of making the technology accessible to everyone, particularly those who are often excluded from traditional financial services.
The Treasury Department’s Financial Stability Oversight Council asked lawmakers to pass legislation to give regulatory responsibility to regulators for crypto on Oct. 3. There are many bills that regulate crypto. These include the Digital Commodities Customer Protection Act of 2022 in Senate, and in the House the Lummis-Gillibrand Responsible Fintech Innovation Act and Digital Commodity Exchange Act of 2022.