HFSC Considers Impact Of Increased Digital Asset Use On U.S. Financial System

At a hearing titled "America on 'FIRE': Will the Crypto Frenzy Lead to Financial Independence and Early Retirement or Financial Ruin?," the U.S. House Financial Services Committee (the "Committee") considered the increased exposure that institutional investors and individual persons have in the digital assets markets.

The Committee addressed regulatory and financial concerns, including, among others, reporting requirements, illicit activities, market manipulation, and the inability to deliver promised products and services. The Committee also discussed issues of regulatory jurisdiction over the diverse range of digital assets, including concerns raised by the SEC, FDIC, CFTC, FinCEN, FTC, OCC and other federal regulators.