Incoming House Financial Services Committee Chairman Reintroduces Crypto Bill

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The bill will make it easier to get products to market without being subject to heavy regulation. Rep. McHenry wrote a letter to Treasury Secretary Janet Yellen last week seeking to delay the Infrastructure Investment and Jobs Act.

Patrick McHenry, the United States Representative for North Carolina’s 10th Congressional District, has reintroduced the Financial Services Innovation Act, which will help foster financial innovation.

Rep. McHenry is also the elected chair of the House Financial Services Committee and will assume the role in January. The committee is currently chaired by Rep. Maxine Waters of California, who is expected to lose her seat to Republican following midterm elections that saw Republican lawmakers win a majority in the House of Representatives.

The Financial Services Innovation Act

The act aims to create Financial Services Innovation Offices (FSIOs) within federal financial agencies to pave the way for regulatory clarity.

I am reintroducing the Financial Services Innovation Act to modernize and streamline how innovators interact with regulators to create a more inclusive financial system. read the press release.

The bill will make it easier for companies, including those operating in the crypto space, to market products without being subject to burdensome regulation while remaining compliant.

President-elect McHenry said companies will be able to seek an enforceable compliance agreement with regulators, including the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC).

Rep. McHenry revealed that the bill was modeled after a regulatory sandbox program conducted in North Carolina. The program has successfully struck the right balance to foster responsible innovation.

Rep. McHenry Delays Crypto Tax Bill

Patrick McHenry wrote a letter to Treasury Secretary Janet Yellen last week seeking to delay the Infrastructure Investment and Jobs Act. According to the Republican lawmaker, the law contained language suggesting that crypto entities such as wallet makers and miners would be subject to tax reporting rules that they could not meet.

The Treasury’s use of words like broker and cash was central to this issue. The Treasury clarified that the ancillary parts would not be covered by the bill.

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