Businesses will leave the United States if defining the crypto and blockchain industry is left to enforcement agencies, according to the new House Digital Assets Subcommittee chair.
“Agencies are taking major steps to crack down on the crypto blockchain digital assets industry,” said Congressman James French Hill (R-Arkansas). “I'm not here to opine on whether any one of those actions is good or bad, but what I am here to say is that Congress has a unique and crucial role to legislate and that it should not in any way be replaced by enforcement actions or regulatory guidance from the regulatory agencies.”
Hill expressed his opinions at the D.C. Blockchain Summit in D.C. last week.
The D.C. Blockchain Summit is an annual event organized by the Digital Chamber of Commerce.
“These technologies can transform the financial landscape and the landscape of commerce in general across our country,” Hill said. “Congress needs to ensure that there are rules of the road so that we can explore technology here in this country, not drive innovation offshore, and do that with a regulatory framework that's good for developers, investors, consumers, and those participating across our commercial landscape.”
Hill further advocated for stablecoins as a potential cornerstone of a modern payment system if issued under a clear regulatory framework.
“They can serve as the on and off-ramp for many investors,” he said.
In December 2022, U.S. Senate Banking Committee Ranking Member Pat Toomey (R-PA) introduced the Stablecoin TRUST Act that would establish a regulatory framework, allow stablecoins to digitize the U.S. dollar and make it available on a global, instant, and low cost-free basis.
“That makes sense,” Hill said. “To pick up where we left off in the last Congress on that stablecoin legislative approach and try to come up with a product that can pass our committee with bipartisan support.”
Payment stablecoins, if approved, would bridge the gap between fiat and crypto by offering a medium of exchange for investors.
“Obviously, it's a common sense place to start but people need to have confidence in the ability of their stablecoin issuer to redeem their stablecoin for the money and there's a lot of agreement around what makes a good stablecoin, and what kind of reserve should be required to be held,” Hill added.
But he warned that progress would not be made without bi-partisan cooperation.
“I've been heartened by the constructive comments from thoughtful members of the committee, including Maxine Waters, our top Democrat and the ranking member of the House Financial Services Committee, who has repeatedly called for legislation as well as coordination and cooperation between government agencies and the Congress to properly address the digital assets space,” Hill told the audience. “We need that kind of leadership from Democrats and Congress and those in the Senate to be able to bring all parts of a digital ecosystem, a regulatory framework, to the table.”
