Representative Patrick McHenry of North Carolina, the incoming chairman of the House Financial Services Committee, has reintroduced a crypto bill.
Reinstatement of the Financial Services Innovation Act
McHenry, who pushed through the Financial Services Innovation Act in 2016 and 2019, announced The Act will be presented again on December 19. The legislation aims to modernize federal financial institutions and create a special division to help innovators, including those working with blockchain and cryptocurrencies.
According to McHenry, legitimate companies can avoid legal trouble by making a deal to ensure compliance with agencies such as seconds and the CFTC. The measure was inspired by North Carolina’s regulatory sandbox program.
The future chairman of the House Financial Services Committee argues that the regulatory framework should encourage rather than inhibit creative financial practices. They claim that their legislation will streamline the process by which financial institutions and entrepreneurs bring innovative products and services to market without undermining important consumer protections. In addition, he expressed happiness over the re-introduction of his legislation to promote economic diversification and expansion.
The Republican assured that he would continue to advocate for a modern regulatory framework that clearly outlines best practices for fintech companies.
What is the Financial Services Innovation Act?
The Financial Services Innovation Act, also known as HR 9557, aims to spur innovation financial region. According to the act, federal regulators would be required to establish an internal Financial Services Innovation Office (FSIO).
FSIO will provide an “Enforceable Compliance Agreement” to a company. The platform may market its innovative product or service in accordance with a new compliance strategy.
Among other federal agencies, the US Office of the Comptroller of the Currency (OCC) has already announced plans to set up a dedicated innovation office for fintech.
McHenry will replace Democrat Maxine Waters of California as chair of the House Financial Services Committee in January. Republicans are projected to control the House by a 222-213-213 margin. Waters and McHenry, as co-chairs of the committee, have led several bipartisan efforts to determine what went wrong. cryptocurrency Whether or not the exchange FTX and former CEO Sam Bankman-Fried are legally liable for the crash.