The Need for Congressional Action on Digital Assets: A Call to Action by Reps. French Hill and Bryan Steil

The American people have spoken, and their message is clear: they support the vision of a prosperous America, with a strong economy and a commitment to advancing technology. A crucial aspect of this vision is harnessing the power of digital assets and blockchain technology to benefit all Americans. However, the US has been slow to capitalize on this opportunity, with Washington lagging behind in providing a clear regulatory framework. According to recent surveys, a significant portion of American investors, over 55%, own Bitcoin, and more than 40 million Americans own some form of cryptocurrency. Even major financial institutions are now embracing digital assets and the transformative power of blockchain technology, recognizing its potential to make financial products more affordable and accessible. From stablecoins to tokenization of assets and decentralized finance applications, these innovations have the potential to lower costs and expand opportunities for both investors and consumers. Despite the vast potential of digital assets and their widespread adoption, the previous administration was hesitant to recognize their promise, and instead, adopted a hostile stance towards this technology. Regulators failed to provide clear guidance on how to implement this technology in a compliant manner, and instead, implemented policies that hindered adoption. Today, there is a broad consensus that fit-for-purpose regulation is necessary to unlock the potential of digital assets while providing the necessary consumer and national security protections. The world relies on the US to ensure that global payment systems are not used for illicit purposes, including financing terrorism and drug trafficking. Due to the previous administration's inaction, the US has fallen behind, and other countries, including adversaries, are developing products and systems that threaten the dominance of the US dollar. Despite the previous administration's reluctance, House Republicans led the charge in the last Congress and passed landmark legislation creating a forward-looking regulatory framework for digital assets. This bipartisan bill provides necessary protections for consumers and addresses national security and money laundering issues, while solidifying the US as a leader in digital assets and blockchain innovation. Congressional Republicans will now build on this momentum, working in a bicameral manner with the administration and financial regulators to eliminate the hostility towards digital assets. Congress has a unique opportunity to enact legislation that leverages American strengths and unleashes innovation in the digital assets and blockchain space, while solidifying the status of the US dollar as the reserve currency and preferred method of payment for lawful transactions globally. As leaders on the House Financial Services Committee, our immediate priorities include establishing a federal framework with clear rules around stablecoins, providing clarity for the initial sale and distribution of tokens, creating pathways for the registration of centralized platforms for token trading, implementing strong protections against money laundering and terrorist financing, and ensuring fair competition. We have already begun this work by releasing a discussion draft to establish a framework for the issuance and operation of dollar-denominated payment stablecoins in the US. Some may share the view that the digital assets ecosystem is plagued by fraudulent activity, but this only underscores the urgent need for effective legislation and proactive regulatory engagement. By doing so, we can ensure that good actors with innovative products can thrive in the US, while consumers are protected from fraudulent activity. As a nation, we have always looked forward and embraced innovation as a means of lowering costs, increasing opportunity, and enhancing protections. We must do so again. With our newly formed Bicameral Working Group for Digital Assets, we will work closely with Senate Banking Committee Chairman Tim Scott, Senate Agriculture Chairman John Boozman, House Agriculture Chairman G.T. Thompson, and White House Crypto Czar David Sacks to advance legislation that delivers on the promises made to the American people. The era of digital assets in the US has begun, and it is our responsibility to ensure that it is a golden age of innovation and prosperity.