Congressman Patrick McHenry (R-NC), Chair, U.S. House Financial Services Committee, is a key driver in proposed legislation that would provide a statutory framework for digital asset regulations. We hosted a conversation between him and Nick Timiraos, Chief Economics Correspondent at The Wall Street Journal to discuss.
“The SEC has shown they don’t have capacity to regulate digital assets,” McHenry said. Instead they are going after celebrities: “That’s a great way to grab headlines and a stupid way to be a regulator.” His piece of legislation would define what a digital asset is — something no federal law is doing.
McHenry also discussed Vice Chair of the Federal Reserve, Michael S. Barr’s recent remarks about a new version of tough regulatory rules that were introduced last year. The proposal, Basel Endgame, initially would have increased the amount of liquid money banks have to keep on hand as a cushion by about 19%. Now, the proposal will be resubmitted with just a 9% increase following widespread industry pushback.
“A full re-proposal is what is necessary,” McHenry said. The initial proposal wasn’t introduced out of economic activity and policy shift; it was based on policial desire, he added. “It should be a data-driven process.”