The U.S. House Committee on Financial Services has recently passed resolutions to create the Task Force on Financial Technology.
The new task force aims to investigate the current legal framework for fintech, how the technology is used in lending and how consumers engage and benefit from fintech, according to the committee’s press statement.
Amid the emergence of fintech, AI, and other technologies aiming to revolutionize the financial sector, Congress should ensure responsible innovation and that regulators and the law are adapting quickly to these fast-paced developments to “protect consumers, investors and small businesses, Financial Services Committee chair Congresswoman Maxine Waters (D-CA) said.
Congressman Stephen Lynch (D-MA), the newly appointed task force chair pointed out that financial service applications and other emerging technologies that are changing the lives of consumers have vulnerabilities that should be legally addressed by the group. The group also need to reevaluate US consumer protection standards.
Republican congressmen Warren Davidson and Tom Emmer, both of whom are supporters of blockchain and cryptocurrency, will join the fintech task force.
Last month Davidson along with Congressman Darren Soto (D-FL) reintroduced the Token Taxonomy Act, which aims to provide regulatory certainty to the blockchain industry in the U.S. as well as simplifying opposing state initiatives and regulatory rulings on this new industry.
In 2018, Emmer had proposed bills on blockchain and cryptocurrency, one of which is a resolution expressing his support for digital currencies and blockchain. He also authored the Blockchain Regulatory Certainty Act as well as the Safe Harbor for Taxpayers with Forked Assets Act.
Last month, notable CEOs at leading banks, which include JPMorgan Chase’s Jamie Dimon, testified before the House Financial Services Committee to explain how the US banking system has changed following the 2008 financial crisis. Among the topics discussed were the impact of blockchain technology and cryptocurrencies on the country’s financial system.
