House Democrats form crypto-focused working group to address regulatory concerns

Rep. Maxine Waters, the House Financial Services Committee chair, revealed that congressional Democrats have formed a working group focused on cryptocurrencies.

Congressional working group to dive deep into crypto

During a hearing before the House Financial Services Committee's fintech task force, Rep. Maxine Waters stated that as the adoption of digital assets continues to grow, she organized a working group of Democratic members to engage with regulators to dig deeper into the industry.

According to Waters, cryptocurrencies remain minimally regulated and poorly understood. Therefore, she is recommending the working group communicate with experts to do a “deep dive” into the industry. 

Currently, it has not been made clear which representatives would be involved. 

Waters has long criticized cryptocurrency and its unregulated nature, especially given the rise of the cyberattacks, including those against the Colonial Pipeline, which paid a ransom in Bitcoin. The Biden administration has highlighted ransomware as a national security concern following the recent attacks.

The House Financial Services Committee chair joins growing ranks of senior Democratic Party leaders, including Senator Elizabeth Warren, to speak critically about the new asset class.

Warren recently called on lawmakers to tackle issues associated with cryptocurrencies. She suggested that the government should address the problems related to Bitcoin and other digital currencies. 

The pressure for regulation for cryptocurrencies comes at a time when the rollout of a central bank digital currency (CBDC) is being discussed. The topic of the hearing was primarily focused on CBDCs and the potential rewards of a digital dollar. 

Warren further believes that the introduction of a CBDC could “drive out bogus private money” and improve financial inclusion.