To fully focus on digital assets, the U.S House Representatives formed a congressional subcommittee as a first step under the control of the Republican Party, informed Congressman Patrick McHenry on Thursday.

The Subcommittee will be the first in the U.S to be working specifically on financial technology, digital assets and inclusion and will be functioning under the House Financial Services Committee. 

To promote digital currencies, Web3, and Blockchain technology, as well as to promote diversity and bring inclusion in the U.S, the new subcommittee is formed. It will develop a framework for federal regulators on digital currencies, related policies and rules to promote digital financial technology. 

The chairperson of the Subcommittee will be Republican Congressman French Hill as he has also lead the efforts to explore the potentials of U.S central bank digital currency.

In a statement Hill said, “At a time of major technological advancement 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.” 

The new Subcommittee has been formed after the House Financial Committee inquired about the collapse of FTX. The new chairman of the committee, McHenry claimed that the Security and Exchange Commission has not done enough to remove the bad players from the crypto ecosystem ever after the collapse of FTX.

In the U.S the inquiry took place in a rush of various legislative activities. During that time lawmakers rushed to address the shortcoming on the regulatory front during that time. Senator Elizabeth Warren also provided a bill for the U.S crypto firms to follow similar rules as that of the banks to prevent money laundering and other fraudulent activities.

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