Gallego Also Questioned Witnesses on Potential Regulatory Frameworks
WASHINGTON – Today, Ranking Member Senator Ruben Gallego (D-AZ) co-led the Senate Banking, Housing, and Urban Affairs Committee’s first Digital Assets Subcommittee hearing on “Exploring Bipartisan Legislative Frameworks for Digital Assets.” Senator Gallego started the meeting by emphasizing his priorities of fostering American innovation in digital assets while ensuring consumer protection and clear rules of the road.
Watch Senator Gallego’s opening remarks HERE. Watch Senator Gallego’s witness questioning HERE.
Fostering Innovation
Senator Gallego made it clear that he believes the U.S. must remains a leader in the digital assets sector.
“Digital assets are a fast-evolving sector, and the United States must lead in this space. Innovation should be encouraged, and it must be safe, transparent, and accountable. Without robust oversight, bad actors can exploit loopholes, undermining trust in the system and causing harm to consumers and investors. We must ensure that digital assets are not used to circumvent existing laws on money laundering, tax evasion, or illicit financing,” said Senator Gallego.
“At the same time, we must ensure that we are encouraging innovation that is productive and useful to everyday Americans. The growth of things like ‘meme coins’ on everything from Trump to DOGE to Peanut the Squirrel are about flashy headlines and trending on social media, not about helping traditionally un- and under-banked communities gain access to the financial system.”
Clear Rules of the Road
Senator Gallego also highlighted the importance of having clear rules to enable investors and regulators to operate with confidence. To that end, he questioned witnesses on what Congress can learn from existing regulatory frameworks.
“One of the main reasons I think Congress needs to act on digital asset legislation is to ensure the U.S. remains competitive in this space given the rapid pace of digital asset regulation internationally. But it’s equally important we avoid regulatory arbitrage,” Senator Gallego said. “Kraken operates globally in jurisdictions with established digital asset regulations. What elements from these international frameworks should Congress consider incorporating into legislation to ensure U.S. competitiveness and innovation?”
Protecting Consumers
Finally, Senator Gallego emphasized the need for robust consumer protections in the digital assets space.
“I became interested in crypto because I heard from many of my constituents, especially young Black and Latino men, that are excited about what this new technology can offer them in terms of access and investment opportunities that largely they have been shut out of,” said Senator Gallego. “What they don’t want, though, is to be the victims of fraud or dangerous financial loss. Consumers need transparency, safeguards, and recourse if things go wrong.”