Financial Services and General Government Appropriations Act, 2024

Floor Speech

BREAK IN TRANSCRIPT

Mr. LYNCH. Mr. Chairman, I thank the gentleman for yielding.

I do want to point out that 130 countries right now, 90 percent of the world's central banks, are studying and doing research on digital currencies, and, in particular, government-backed digital currencies.

This amendment would prevent the United States from researching an area that 130 countries are right now researching. It would put us very far back at the end of the pack.

Mr. Chairman, as the ranking member of the Subcommittee on Digital Assets, Financial Technology and Inclusion, I rise in strong opposition to H.R. 4664, the Financial Services appropriations bill and the misguided amendment that would essentially prevent our government from exploring and researching a government-issued central bank digital currency.

This year witnessed the collapse of Silicon Valley Bank, Signature Bank, and other U.S. midsize banks holding a combined $500 billion in assets, an institutional banking crisis requiring decisive action by the FDIC, Treasury, and the Federal Reserve to protect American investors and the U.S. economy.

We are also in the immediate aftermath of a catastrophic demise of the crypto market following the abrupt implosion of FTX, Celsius, BlockFi, and other crypto companies.

Just this week, FTX founder Sam Bankman-Fried was convicted of seven counts of financial fraud and conspiracy after he stole up to $14 billion from FTX customers and investors.

Yet, in this climate that demands regulatory oversight and thorough understanding of this market, this appropriations bill actually guts funding for critical agencies that serve to protect American investors, including the Securities and Exchange Commission.

Moreover, to the great detriment of U.S. global economic leadership, the amendment under consideration would prevent the Treasury from even examining a government-backed central bank digital currency.

BREAK IN TRANSCRIPT

Mr. LYNCH. As I said, Mr. Chairman, more than 130 countries and 90 percent of the world's central banks are exploring their own government-backed digital currencies.

We should not be suppressing innovative approaches without fully evaluating its benefits and the risks to the American public.

Mr. Chairman, I urge my colleagues to join me in opposing this bill and the amendment that would impede commonsense regulation and research and innovation.

BREAK IN TRANSCRIPT

Source