House memo details Congress’ priorities before the crypto CEO hearing

The US House of Representatives Financial Services Committee issued a memo detailing the main points of discussion during the meeting. The mixed hearing on digital assets will be held today 10:00 AM Eastern Time.

When speaking to members of the Financial Services Commission, memorandum The confirmation hearing will designate a team for six executives from the crypto community as witnesses. The list includes Jeremy Allaire of Circle, Samuel Bankman-Fried of FTX, Brian Brooks of Bitfury Group, Charles Cascarilla of Paxos, Denelle Dixon of Stellar, and Alesia Jeanne Haas of Coinbase.

The hearing was titled “The Future of Digital Assets and Finance: Understanding the Challenges and Benefits of American Financial Innovation”, which aimed to discuss four key aspects related to cryptocurrency exchanges: stable currency products, digital asset regulatory issues, and federal regulatory responses .

The briefing stated: “This hearing will review some new products and services provided by major digital asset market participants, the role of cryptocurrency market exchanges in promoting investment in cryptocurrencies and related transactions, and the growth of stablecoins and other digital assets. , And the current regulatory environment governing these new products and services.”

Although the memo emphasizes the role of exchanges as an entry point for crypto investors, the hearing will also discuss decentralized finance because it has the potential to “copy and replace traditional financial services such as loans, asset trading, insurance and other services. “

The document also discussed the differences in the operating structure and reserve composition of stablecoins compared with fiat currencies, adding:

“The cryptocurrency market does not have an overall and centralized regulatory framework, which makes investments in the field of digital assets vulnerable to fraud, manipulation, and abuse. Digital assets and related service providers may have money laundering, terrorist financing, evasion of sanctions, rule of thieves, and others. Illegal financial risk.”

Acknowledging the rise of cryptocurrency, Congress hopes to formulate a clear position on Central Bank Digital Currency (CBDC) based on ongoing research by the Federal Reserve to “review the potential benefits and risks of CBDC and its impact on the domestic payment system in the United States.”

Just yesterday, Circle CEO Jeremy Allaire Released The statement before the hearing, stating:

“In a world where money has become the core feature of the Internet, the United States should actively promote the US dollar as the main currency of the Internet and use it as a source of national economic competitiveness, security and major upgrades. More efficient and inclusive financial services.”

Allaire’s company Circle is a U.S. dollar-backed stable currency USD Coin (USDC). He suggested that the US government could make stablecoins mainstream through reserves denominated in dollars. “The policy framework needs to support an open and competitive competitive environment and allow new technologies to flourish,” he added.