A top lawmaker says the U.S. is shifting from “regulation by enforcement” to clear oversight, with new leadership poised to boost cryptocurrency and AI innovation.

A New Era for Crypto and AI Regulation

U.S. House Financial Services Committee Chairman Patrick McHenry has highlighted progress in crypto regulation, focusing on new leadership roles and the evolving oversight of cryptocurrencies and artificial intelligence (AI). In a post on social media platform X Friday, McHenry praised the creation of a “crypto and AI czar” as a major development.

“The mere fact that the U.S. now has a crypto and AI ‘czar’ reflects the impact of the Financial Services Committee,” he claimed, emphasizing:

The era of regulation by enforcement is over.

“With folks like David Sacks and Paul Atkins, the future of the digital asset ecosystem in the U.S. is brighter than ever,” the congressman added. “Paul Atkins has the expertise and experience needed to restore faith in the SEC. I’m confident his leadership will lead to clarity for the digital asset ecosystem and ensure U.S. capital markets remain the envy of the world,” the congressman continued.

President-elect Donald Trump recently announced two significant appointments: David Sacks as the White House AI and Cryptocurrency Czar, and Paul Atkins as Chair of the Securities and Exchange Commission (SEC), replacing Chair Gary Gensler. Sacks, a venture capitalist and former Paypal executive, is tasked with developing a legal framework to bolster the U.S. crypto industry and ensure global competitiveness in artificial intelligence. Atkins, a former SEC commissioner known for his pro-crypto stance, is expected to shift the agency’s approach towards more lenient regulations, potentially easing enforcement actions against digital asset firms. These appointments signal the incoming administration’s intent to foster innovation in emerging technologies while reconsidering existing regulatory measures.

McHenry has announced he will retire from Congress at the end of his current term, which concludes in January 2025. As Chairman of the House Financial Services Committee, he has been a leading advocate for clear regulatory frameworks in the digital asset sector.

His comments come amid growing calls for a balanced regulatory approach that fosters innovation while ensuring investor protection. Industry observers have long criticized “regulation by enforcement” for creating uncertainty and stifling growth, making this transition a welcomed change for stakeholders. The new focus on leadership and structured policies marks a pivotal moment for U.S. cryptocurrency and AI development, with advocates anticipating a more supportive environment for innovation.

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