Next House Committee Chair Reintroduces Crypto Innovation Bill

If the proposal becomes law, businesses will be able to negotiate an enforceable agreement with certain departments or offices within the federal financial regulatory agency. It would open the way for further regulatory action if such an agreement were reached.

North Carolina Representative Patrick McHenry, currently the ranking member on the House Financial Services Committee, will be the chairman of the committee starting in January. He has reintroduced legislation to establish innovation offices within government agencies dealing with financial services.

McHenry released a statement on December 19, 2018 stating that he has reintroduced Financial Services Innovation Act. This is legislation McHenry had previously lobbied in 2016 and 2019.

This legislation was passed with the intent of creating, within the existing framework of federal financial institutions, offices that could assist innovators in the United States with cryptocurrencies or blockchain technology in finding a way of complying with current regulations. This was the main purpose of the legislation.

McHenry explains that companies are authorized to request an enforceable agreement to comply with regulatory offices such as the Securities and Exchange Commission and Commodity Futures Trading Commission. A similar agreement would enable firms to proceed lawfully and without being held back by excessive or outdated restrictions. This would be a major benefit for these companies.

He said that the law was based on the North Carolina regulatory sandbox program.

Several government agencies made earlier statements about their plans to build innovation offices that focus on fintech. These announcements have been made before.

In 2018, the Securities and Exchange Commission (SEC), established the Strategic Hub for Innovation and Financial Technology. It is commonly known as FinHub. The center will become an independent agency in 2020.

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