The House Financial Services Committee issued a note describing the discussion points during the Hybrid Digital Asset Hearing, which will take place today at 10:00 ET.
Addressing members of the Financial Services Commission, the memo confirmed that six leaders of the crypto community will serve as witnesses during the hearings. The list includes Jeremy Aller from Circle, Samuel Bankman-Fred from FTX, Brian Brooks from Bitfury Group, Charles Cascarella from Paxos, Denelle Dixon from Stellar and Alicia Jan Haas from Coinbase.
The consultation, entitled Digital Assets and the Future of Finance: Understanding the Challenges and Benefits of Financial Innovation in the USA, focuses on four main aspects of cryptocurrency exchanges: Stablecoin offerings, problems with the regulation of digital assets and federal regulatory actions. …
The summary states: “This consultation will look at some of the new products and services offered by major players in the digital asset market, the role of cryptocurrency exchanges in facilitating investments in cryptocurrencies and related transactions, the growth of stablecoins and other digital assets, and current framework. regulatory framework governing these new products and services. ”
While the note highlights the role of stock exchanges as a springboard for crypto-investors, the hearing will also discuss decentralized finance due to its potential to “duplicate and replace the provision of traditional financial services such as loans, asset trading, insurance and other services.”
The document also highlighted the differences in the operating structures and composition of stablecoin reserves versus fiat currency, and added:
Cryptocurrency markets do not have a comprehensive and centralized regulatory framework, which makes investments in the digital asset area vulnerable to fraud, manipulation and abuse. Providers of digital assets and related services may include money laundering, terrorist financing, evasion of sanctions, theft and other illegal financing risks. ”
Congress acknowledges the emergence of cryptocurrencies, and hopes to develop a clear position on central bank digital currencies (CBDCs) based on the Federal Reserve’s ongoing research to “examine the potential benefits and risks of digital currencies and their impact on the United States domestic payment system.” . ”
Yesterday, Circle chief Jeremy Aller made statements ahead of the hearing where he said:
“In a world where money has become the main attraction of the Internet, the United States must actively promote the use of the dollar as the primary currency of the Internet and use it as a source of national economic competitiveness, security and the most important modernization needed for more efficient and inclusive financial services. . ”
Aller’s Circle is the only USDC-backed and USD-backed stablecoin issuer. He suggested that the US government could make extensive use of stack coins through dollar reserves. “The political framework must maintain an open and competitive playing field and allow new technologies to flourish,” he added.