Coinbase among those testifying as House holds crypto hearings

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• The crypto world will tune in to a House hearing this morning, entitled, "Digital Assets and the Future of Finance: Understanding the Challenges and Benefits of Financial Innovation in the United States." On the witness list are top brass from half a dozen crypto firms, including Alesia Jeanne Haas, CFO of Coinbase Global (NASDAQ:COIN). Lawmakers hope the session will improve their understanding of crypto assets and how the sector fits in to existing regulations. The hearing goes live at 10 a.m. ET.
• Bigger picture: The executives are expected to highlight the potential upsides of crypto and blockchain technology while downplaying the risks of the sector. They'll also urge Congress to pass laws which would give crypto regulatory authority to a single federal agency. Under current rules, the SEC oversees spot markets for securities, while the Commodity Futures Trading Commission oversees derivatives markets based on commodities, but neither regulator maintains regular oversight of spot markets for commodities like Bitcoin (BTC-USD) and Ethereum (ETH-USD).
• "A successful policy framework would allow crypto platforms to offer both spot and derivatives trading on crypto assets under one unified system, with one rule book and one technology platform to manage risks related to all trading activity in customer accounts," Sam Bankman-Fried, CEO of FTX, said in prepared remarks to the House Financial Services Committee.
• Go deeper: Other topics likely to be discussed are investor protection, accountability of crypto exchanges, stablecoin offerings and emerging fintech products and services. Supporters say crypto can enable faster and cheaper transactions than traditional payment networks, as well as innovation and financial inclusion. However, policymakers have previously voiced concerns over the threat to financial stability, and criminal activity like fraud, tax evasion and money laundering.