News Release: House Financial Services Republicans Squander Opportunity to Hold Crypto Industry Accountable


March 9, 2023

William Pierre-Louis, Jr.
(347) 499-7874

House Financial Services Republicans Squander Opportunity to Hold Crypto Industry Accountable
Subcommittee hearing held today seeks to blame regulators for crypto failures, doubles down on hollow claims of crypto innovation.

Washington, D.C. — The House Financial Services subcommittee hearing today on digital assets should have been an opportunity to identify critical actions Congress and regulators should take to address the fallout of the crypto crash, but consumer advocacy groups fear the hearing will take a very different direction instead.

“The crypto crash has erased trillions in investments, caused numerous shaky crypto firms to collapse, and left millions of ordinary investors with little remedy to recoup or restore their lost investments,” said Mark Hays, senior policy analyst with Americans for Financial Reform and Demand Progress. “Congress should hold the crypto industry accountable by supporting regulatory action to rein in the industry’s abuses and protect consumers from further harm.”

Advocates believe Republicans will likely seek to scapegoat regulators and prop up the notion that they must give crypto assets and firms special treatment because of their innovative potential to help consumers — a claim that rings hollow in the face of the industry’s current collapse.

“The Financial Services Committee’s Republican leadership has proposed a set of bills today that represent not just one, but a stack of get-out-jail-free cards for an industry that refuses to take full responsibility and would rather blame regulators for simply attempting to do their jobs,” Hays said.

AFR and Demand Progress are calling on Congress to reject these give-aways to the crypto industry and to refocus their efforts on supporting regulatory action that will prevent further harm to consumers, investors and the financial system.

For more information, please read our statement for the record submitted to the committee.