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Eliminate Barriers to Innovation Act of 2021

Floor Speech

Date: April 19, 2021
Location: Washington, DC
Issues: Finance and Banking

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Mr. LYNCH. Mr. Speaker, I thank the gentleman from Colorado for yielding.

Mr. Speaker, I rise to speak in support of the Eliminate Barriers to Innovation Act. It has been 12 years since the cryptocurrency bitcoin was first introduced. Since then, digital assets have proliferated around the world. By one estimate, there are more than 4,000 cryptocurrencies and other digital tokens in use today.

While we haven't yet encountered a large-scale crisis, the lack of clarity in cryptocurrency regulation has become a real barrier in developing a framework to optimize the potential benefits of this technology.

U.S. financial regulations historically have been developed in response to financial disasters. We had the creation of the FDIC, which followed over 1,000 bank failures during the Depression. Similarly, the development of the CFPB occurred after the 2008 financial crisis.

This bill, H.R. 1602, is an opportunity for Congress and our regulators to act proactively toward financial innovation rather than to address gaps in our regulatory framework after the fact. Digital assets have the potential to make transactions more efficient, improve the raising of capital for small businesses, and increase inclusion across our financial system. However, the rapid rise of this technology has created some concerns and questions about consumer protection and about how to ensure that we gain the benefits of this innovation while mitigating potential risks.

This bill, H.R. 1602, will create critical collaboration between the SEC, the CFTC, and Congress on the topic of digital assets. It will bring our regulators, small businesses, fintech companies, and investor protection groups to the same table to discuss cybersecurity investor protections and the creation of inclusive and transparent markets. In short, our hope is that this bill will help get the regulatory framework of digital assets right before a crisis occurs.

Mr. Speaker, I thank the ranking member, Mr. McHenry, for working on this bill and also Chairwoman Waters for her support.

Mr. Speaker, I urge my colleagues to vote ``yes.''

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