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US House Financial Services Committee to Discuss 'Digital Dollar' and Crypto Regulation

The House Finance Committee is holding a special hearing on cryptocurrency regulation on September 14.

The House Finance Committee is holding a special hearing on cryptocurrency regulation on September 14.
Creator: Voyagerix Credit: Shutterstock Copyright: Copyright (c) 2019 Voyagerix/Shutterstock.

WASHINGTON D.C. – The US House Finance Committee is turning its focus towards the digital dollar and cryptocurrencies. The Committee rolled its sleeves and announced that it will hold a hearing with the Digital Assets, Financial Technology, and Inclusion Subcommittee. 


The hearing will be called "Digital Dollar Dilemma: The Implications of a Central Bank Digital Currency and Private Sector Alternatives," and it's scheduled for Thursday, September 14, 2023.


Does the US turn its focus back to crypto?


According to a recent announcement, the Securities and Exchange Commission (SEC) has shifted its regulatory focus from cryptocurrencies to another powerful force: AI. Gary Gensler, the Chair of the SEC, emphasized the transformative nature of AI and the need to prepare for its impact on financial markets.


Digital Dollar and the SEC


In an interview with Bloomberg, Gensler stated:


 "This [AI] is the most transformative technology of this generation. There’s a ‘there’ there—we can get to crypto later. We’re taking so much of what we humans do on a daily basis and automating it." 

The SEC is now concerned about mass automation's effects on the markets it oversees, as AI can provide investment advice and recommendations, fundamentally altering the financial landscape.


Digital currencies on the rise


While the SEC shifts its focus, Russia has been making significant strides in the world of digital currencies. The Russian Central Bank has announced the launch of the pilot phase for the Digital Ruble, set to begin on August 15. This follows the recent approval of the bill to create a Central Bank Digital Currency by Russian lawmakers and President Putin's endorsement.


During the pilot phase, the Central Bank of Russia will collaborate with 15 Russian lenders, providing digital wallets to users. These wallets will be created on the Central Bank's platform, with participating banks facilitating their distribution.


Russia's progress in the digital currency realm, with the impending launch of the Digital Ruble, has highlighted the need for the US to navigate its regulatory landscape effectively. The contrasting approaches of these two nations may serve as motivation for the US to take tangible actions in the evolving field of digital currencies, ensuring it remains competitive and secure in the global financial landscape.

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