Subcommittee on Digital Assets Seeks to Create Regulatory Framework

• Stablecoin regulation is the first priority for the newly formed Financial Services Subcommittee on Digital Assets, Financial Technology and Inclusion.
• Rep. French Hill (R-Ark.), the chair of the subcommittee, stated that the stablecoin draft will be used as a model for how the committee will approach digital asset regulation.
• Privacy statute is also a priority of the committee, which is important for the digital asset industry.

The U.S. House of Representatives has created a new subcommittee to oversee digital assets, financial technology, and inclusion. The Financial Services Subcommittee on Digital Assets, Financial Technology and Inclusion will be chaired by Rep. French Hill (R-Ark.), who has stated that the committee’s first priority is to regulate stablecoins.

Hill has made it clear that the subcommittee plans to use the stablecoin draft as a model for how it will approach digital asset regulation moving forward. He believes that this is an important starting point for the committee, as it will provide much-needed clarity on which agency, the SEC or the CFTC, will have explicit oversight. Hill has also stated that the committee is looking to pursue a privacy statute federally, which is important for the digital asset industry.

The subcommittee is also focusing on financial inclusion, as it seeks to ensure that everyone has access to the same financial opportunities. This includes providing guidance on how to ensure that products and services are made available to underserved markets. Additionally, the subcommittee is looking for ways to create a more equitable financial system by increasing access to financial services and providing financial education to those who may not have access to it.

The subcommittee also seeks to create an environment that encourages innovation in the digital asset and fintech sectors. This includes exploring how to create a regulatory framework that encourages the development of new products and services that can benefit consumers and businesses. Hill has stressed the importance of creating a regulatory framework that is flexible enough to adapt to the ever-changing digital asset landscape.

Finally, the subcommittee is also looking to address consumer protection by providing guidance on how to protect consumers from fraudulent or deceptive practices. Hill has stated that this is an important priority, as it will help ensure that consumers have the necessary information and resources to make informed decisions when it comes to investing in digital assets.

Overall, the Financial Services Subcommittee on Digital Assets, Financial Technology and Inclusion is seeking to create an environment that encourages innovation, financial inclusion, and consumer protection. With Rep. French Hill at the helm, the subcommittee is looking to create a regulatory framework that is flexible enough to adapt to the ever-changing digital asset landscape. By providing guidance on stablecoin regulation, financial inclusion, and consumer protection, the subcommittee is looking to create a stable and secure environment for digital assets.

EU Commissioner Calls for Global Crypto Regulations

• The European Commissioner Mairead McGuinness has called for global crypto regulations instead of just EU regulations.
• McGuinness said that without a global approach, the crypto market will suffer from more and more problems.
• The EU has already passed the Markets in Crypto Assets regulation (MiCA), but the vote has been postponed to April.

The European Union is one of the first major jurisdictions in the world to regulate the crypto market with its Markets in Crypto Assets regulation (MiCA). As the crypto sector continues to grow in global importance, the EU’s leading financial-services official has called for global crypto rules instead of just EU rules.

Mairead McGuinness, the European Commissioner, told CoinDesk on the sidelines of the World Economic Forum in Davos that the turmoil in the crypto market has given extra ammunition to those pushing for a global rulebook. She said that the technology is borderless and if the world fails to put a global approach into place, the crypto market will suffer from more and more problems.

McGuinness also said that it’s great that the EU is the first major jurisdiction in the world to regulate the sector, but there’s no point in Europe being on its own because this is a global development and it can’t be restricted to just one region.

The EU’s MiCA regulation was meant to have been voted on in December, but the date has since been pushed back to April. The regulation, which was first proposed in September 2020, is intended to regulate the crypto sector in the same way that traditional financial markets are regulated. It includes provisions for consumer protection, transparency and market integrity.

The regulation also includes measures to protect investors, such as rules against insider trading and market manipulation, and new rules on custody and trading of digital assets.

The MiCA regulation is an important step forward in the global regulation of the crypto sector. If the world is to make use of the potential of the sector and protect investors, it is important that the regulation is adopted by all major jurisdictions. This is why McGuinness is calling for a global approach to crypto regulation, so that all countries are on the same page.

FTX Exploration: Ray Weighs Possibility of Reviving Crypto Exchange

• John J. Ray III, the new head of FTX, is exploring the possibility of reviving the bankrupt crypto exchange.
• Ray’s comments came in his first interview since taking over FTX in November.
• Ray said the decision would come down to whether restarting FTX’s international exchange would recover more for customers than just liquidating assets or selling the platform.

John J. Ray III, the new head of the crypto exchange FTX, is exploring the possibility of reviving the bankrupt platform. The comment came in his first interview since taking over the exchange in November.

Ray, who previously handled Enron’s restructuring, said that despite the accusations of criminal misconduct against former CEO Sam Bankman-Fried, customers have still lauded FTX’s technology and said it could be worth reviving the exchange.

Ray noted that the decision to revive the exchange would ultimately come down to whether it would be more beneficial for customers to restart FTX’s international exchange, rather than liquidating assets or selling the platform. “Everything is on the table,” Ray said. “If there is a path forward on that, then we will not only explore that, we’ll do it.”

The FTX token FTT was trading up 33% on Binance on the news. In the interview, Ray also criticized Bankman-Fried’s comments to the media and elsewhere as being unhelpful. Bankman-Fried has said FTX did not need to file for Chapter 11 bankruptcy protection and has been critical of Ray’s decisions.

Should FTX be revived, Ray said it would require a significant financial commitment, as well as a team of experienced professionals. He added that he is also exploring the possibility of forming a partnership with another cryptocurrency exchange.

These efforts could potentially revive FTX and allow customers to regain access to their funds. However, it is still uncertain whether the exchange will be able to make a successful comeback. Until then, investors will have to wait and see.