The House Financial Services Committee on Wednesday ratcheted up its calls for stricter regulation of digital assets, pressing bank regulators about the need for stablecoin legislation and scheduling a hearing for next month on the FTX collapse.
The committee's leaders — Chair Maxine Waters, D-Calif., and Rep. Patrick McHenry of North Carolina, the panel's ranking Republican — say
Waters and McHenry announced a hearing on FTX will be held in December but didn't immediately share an exact date or a witness list. According to a
The committee "expects to hear from the companies and individuals involved, including Sam Bankman-Fried, Alameda Research, Binance, FTX and related entities, among others," McHenry said in a statement accompanying the hearing announcement.
At a hearing Wednesday featuring banking regulators, Waters asked Federal Reserve Vice Chair for Supervision Michael Barr if he supports the overall approach that she and McHenry have outlined in their legislation. As of an October draft, that bill would
Barr said he was "deeply encouraged" by the work on the legislation and reiterated the importance of some kind of stablecoin bill.
"Stablecoins that are backed by the dollar really borrow the trust of the Federal Reserve," he said. "So it's critical that we have appropriate controls, [and] strong federal oversight of approval of stablecoins and regulation of stablecoins."
Other witnesses, including acting Comptroller of the Currency Michael Hsu and acting Federal Deposit Insurance Corp. Chairman Martin Gruenberg, signaled their support for stronger cryptocurrency regulation. When asked by Rep. Brad Sherman, D-Calif., if crypto standards should be "at least as tough as Basel" standards, each regulator agreed.
Clashes between Biden-appointed bank regulators and Republicans could intensify should the GOP take control of the House as expected. At a Blockchain Association event on Wednesday in Washington, Rep. Tom Emmer, R-Minn. — who will be the Republican whip in the next Congress — gave a bullish speech on cryptocurrencies, telling the crowd that they are "here to stay" and will "continue to grow."
"We need to use the stage that is Congress to promote all of you beyond the walls of the Capitol," he said. "People need to understand more out there that they shouldn't be afraid of this."
Regulators were also asked about capital rules for banks. McHenry asked Barr if the Fed is considering large-bank capital requirements as a way to free up capital in the Treasury market.
"If you rank-ordered the list of reasons for Treasury market liquidity constraints right now, it's relatively low on that list," he said. "It's probably on the list, but relatively low on the list."
