Spotlight on AI, digital assets at House subcommittee hearing

The House Financial Services Subcommittee on Digital Assets, Financial Technology, and Inclusion convened a pivotal hearing on Dec. 5, to hear from high-ranking representatives from federal agencies, including the Federal Reserve, Securities and Exchange Commission (SEC), and the Office of the Comptroller of the Currency (OCC), spoke on the increasing influence of new technologies such as digital assets, distributed ledgers, and artificial intelligence in reshaping the financial sector.

The hearing underscored the escalating need for robust supervision of digital assets, a greater focus on AI risks, and a cautious approach toward implementing distributed ledger technology in federal banking.

In an opening statement, Subcommittee Chair French Hill said:

“Today, new and emerging technologies like digital assets, distributed ledgers, quantum computing, and greater use of artificial intelligence are dominating discussion.”

He said that, for the current hearing, the committee has asked members from government agencies to testify about their work on innovation in those areas.

Agencies address crypto issues

Representatives from numerous federal agencies weighed in on issues related to cryptocurrency. Michael S. Gibson, Director of Supervision and Regulation at the Federal Reserve, said his agency recently announced a novel activities supervision program. This program aims to manage risks associated with cryptocurrency, Distributed Ledger Technology (DLT), and intricate technology-driven collaborations with fintech firms outside of traditional banking

Meanwhile, Valerie A. Szczepanik, Director of the Securities and Exchange Commission (SEC)’s FinHub, said her group has spent a “significant amount of attention and resources” on distributed ledger technology (DLT) and digital assets. Szczepanik underscored that the SEC’s FinHub team has developed a comprehensive guide to assist market players in determining if digital assets qualify as securities.

Donna Murphy from the Office of the Comptroller of the Currency (OCC) noted the agency’s prudent approach to implementing Distributed Ledger Technology (DLT) in federal banking. S

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Author: Mike Dalton

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