U.S. lawmakers are intensifying their efforts to establish clear regulations for the burgeoning crypto industry, currently valued at $2.7 trillion. On April 9, the House Financial Services Committee’s Subcommittee on Digital Assets, Financial Technology and Artificial Intelligence convened a timely hearing. This challenge marks the start of a new wave of advocacy for strong, clear regulations. Rather, the aim should be to make U.S. securities laws work with the realities brought about by our digital age.

The Financial Innovation and Technology for the 21st Century Act, which passed the House with bipartisan support on May 22, underscores the growing momentum. Throughout the course of this hearing, the emphasis was on finding balance moving forward in the regulatory environment. Most importantly, it tackled the roles of both the SEC and other regulatory bodies.

Subcommittee chairman Bryan Steil (R-WI) stressed the SEC’s authority over token offerings.

"At the same time, the Committee feels strongly that there is a role for the U.S. Securities and Exchange Commission to play in the digital asset ecosystem. For example, the Committee believes that issuers raising capital through the sale of new digital assets should fall under the jurisdiction of the SEC," - Rep. Bryan Steil

House Financial Services Committee Chairman French Hill commended the bipartisan work in providing clarity and stability in the marketplace for crypto assets.

"It is incumbent on us to build on that momentum and continue working toward a comprehensive regulatory framework that establishes clear rules of the road for digital asset markets… I look forward to hearing from our whitnesses today, and working with coleagues to get this across the finishline this year," - Rep. French Hill

Not all members were in agreement. Rep. Maxine Waters loudly expressed her dissent, charging that committee members were giving a sweetheart deal to Donald Trump’s crypto investments.

Even with the jarring differences, there is hope that meaningful progress can still be achieved. Rep. Bryan Steil, Chairman of the Transportation and Infrastructure Committee, was optimistic that meaningful legislation could be passed by the end of 2025.