Brown Rudnick partner Hailey Lennon discusses the possible regulatory loopholes brought to light by the collapse of FTX and lawmakers’ push for tighter crypto regulations.
Republicans on the House Financial Services Committee announced Thursday that they will create a new cryptocurrency subcommittee after a difficult year for the industry.
Rep. French Hill, R-Ark., will serve as the first chair of the Subcommittee on Digital Assets, Fintech and Inclusion.
“At a time of great technological advancement and change in the financial sector, our role is to work across the aisle and foster responsible innovation while encouraging FinTech innovation to thrive safely and effectively in the United States,” said Hill in an explanation.
An illustration image shows gold-plated souvenir cryptocurrencies. (JUSTIN TALLIS/AFP via Getty Images/Getty Images)
The new board’s responsibilities include providing guidance to federal agencies overseeing the burgeoning industry and developing guidance to reach underserved communities, Hill said.
PARTNERS OF FTX FOUNDER SAM BANKMAN-FRIED Plead Guilty To Brokering Fraud Over Wire, Other Charges From SEC
Some lawmakers and regulators have called for more oversight of the digital asset industry after a year in which FTX, once the world’s second-largest exchange, imploded.
Former FTX Chief Executive Officer Sam Bankman-Fried arrives on January 3, 2023 to enter a plea before U.S. District Judge Lewis Kaplan in federal court in Manhattan, New York. (Ed Jones/AFP via Getty Images/Getty Images)
Sam Bankman-Fried, founder and former CEO of FTX, was arrested last month and pleaded not guilty to fraud, money laundering and campaign finance violations.
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Cryptocurrencies have also collapsed across the board in the past year. Bitcoin, the largest cryptocurrency by market cap, fell below $20,000 by the end of 2022, losing more than 60% of its value.