New Governmental Task Force Will Focus on Fintech, Including Blockchain and Crypto Tools
- FinTech Task Force was launched by members of the US House of Representatives.
- Warren Davidson, Tom Emmer, and Josh Gottheimer voice their support for cryptocurrencies, while Brad Sherman voiced his disdain.
Figuring out the regulations to govern the blockchain and cryptocurrencies has been a battle, but it looks like there has been some progress. In the US House of Representatives, there is a new task force that has appeared that will help with the progress of the financial technology. However, the aspect of the new task force that is attracting attention is the fact that this fintech task force will also cover blockchain’s advancement.
The group is being referred to as the FinTech Task Force, and it was created in a voice vote on Thursday by the House Financial Services Committee. The Task Force will be examining the way that cryptocurrency and blockchain tools work, among others. Stephen Lynch, the representative from Massachusetts, will be running the task force.
There are a few concerns that the entity will be working on so far, like the regulation of fintech at the domestic and international level. Other issues include the lending and use of “alternative data” for loan underwriting, the legal and regulatory payment framework, and data privacy.
Three of the newest members of the task force are Warren Davidson, Tom Emmer, and Josh Gottheimer, who are all major proponents of Bitcoin. So far, the Token Taxonomy Act has been introduced to Congress on two occasions, both by Davidson. The act would make it possible to exempt crypto assets from the current securities law and will give a legal standing to digital assets.
Emmer has also pushed for an exemption involving cryptocurrency, specifically to keep the startups in the industry from succumbing to the regulations that would require them to register in a money transmission business. However, the key to avoiding these regulations would be not to hold or trade cryptocurrency.
Gottheimer has been a longtime member in the crypto world, and even co-sponsored the proposed Token Taxonomy Act that Davidson brought in. In a statement, he said that the implementation of framework for blockchain and other fintech would make it easier to move forward in innovation. It would also make the US “a leading force in this space.”
Five members of the task force – Lynch, Gottheimer, Emmer, Davidson and Bryan Steil – all signed an open letter to the Internal Revenue Service (IRS). Collectively, they urge the IRS to ultimately provide more clarity on the way that gains and losses of cryptocurrency are handled.
Along with the above mentioned names, the task force also includes US Representatives David Scott, Al Lawson, Cindy Axne, Ben McAdams, Jennifer Wexton, French Hill and Blaine Luetkemeyer. However, Capitol Hill is not entirely filled with proponents. On Thursday, California representative Brad Sherman called for a ban on cryptocurrency all together.