Washington, D.C. — The U.S. House Financial Services Committee is hosting a hearing today focusing on “Digital Assets and the Future of Finance: Understanding the Challenges and Benefits of Financial Innovation in the United States.” In response to the hearing and today’s important discussions, BPI President and CEO Greg Baer issued the following statement:
We welcome the Committee’s hearing and its recognition that additional work is needed to ensure that the U.S. legal and supervisory framework governing digital assets is appropriately designed and calibrated. Today, the largest players in the digital assets space operate largely outside the existing U.S. regulatory framework, with resulting risk for consumers and financial stability. Meanwhile, regulated banks continue to await clear rules from regulators about their authority to engage in digital asset-related activities, leaving the banking industry largely on the sidelines even though banks are best positioned to be the most responsible and trustworthy players in this market.
If the goal is to protect consumers and ensure that financial stability risks do not arise, it makes no sense to perpetuate a system wherein banks continue to operate with uncertainty and are forced to ask permission of their regulators to engage in digital asset-related activities, while nonbanks continue to engage in these activities outside of the view of regulators. We hope this is the first of many hearings and discussions to come.