Ranking Member Lynch's opening remarks at digital assets Subcommittee hearing

On the heels of last week's markup hearing, which considered stablecoin legislation, the committee is now quick to move on to fulfilling the crypto industry's next request, addressing the crypto market structure. This hearing includes aligning the U.S. securities laws for the digital age. In its title, I interpret this to mean lowering regulatory standards and removing securities laws that protect consumers and investors, which are viewed as obstacles to the crypto industry. The U.S. has had a long, outstanding history of robust securities laws designed to protect investors, encourage competition, and ensure financial stability. At a time when our country faces high inflation and President Trump's reckless tariffs send our markets into a tailspin, this committee should be working to preserve market integrity, not grant an industry wish list. Just this week, crypto prices dropped in line with the dips following tariff announcements. Bitcoin's price plummeted to under $77,000, down more than 10% from its high last week. If these speculative products resemble in their activity traditional security products, they should be treated the same way. For the last several years, the crypto industry has launched a campaign against the SEC, claiming it's been unfairly targeted and that it's unable to comply with securities laws. Rather than adjust their practices or acknowledge that their products do come under the jurisdiction of existing securities laws, the industry has fought to elect and appoint crypto-friendly policymakers. As we speak, crypto firms are fighting amongst themselves to craft legislation that favors their business models and ensures they can maximize their profits. It is also notable that under the Trump administration, the SEC has dropped almost every lawsuit against some of the worst offenders in the crypto industry. This includes Crypto.com, Ripple, Kraken, Gemini, Finance, Coinbase, Robinhood, and Uniswap. I assume that under the nominated chair, Paul Atkins, who has advised several crypto firms, the SEC will continue in this direction. These are companies that have a proven history of irresponsible, illegal, and predatory practices. Yesterday, the U.S. Justice Department announced it is disbanding the National Cryptocurrency Enforcement Team, which had been charged with combating fraud and illicit finance. This is deeply concerning. Cryptocurrencies have been in existence for 17 years, but still lack any meaningful use cases. Crypto assets are only needed to trade crypto. They are speculative products similar to securities that can make a handful of investors and firms handsome returns. These products also come with a myriad of risks, including investor loss, lack of adequate disclosures, volatility, and more. Regulatory investors saving for retirement or pension funds that serve retired teachers, firefighters, and nurses should not be exposed to these risky products. While promises of faster payment and greater financial inclusion have remained unfulfilled, the only proven use cases have been for money laundering, terrorist financing, and illicit finance. I remind my colleagues that the crypto winter, following the collapse of FTX, BlockFi, and several others, was not too long ago. Despite multiple incidents in which crypto firms have failed, my Republican colleagues seem determined to pass legislation that would essentially legalize crypto crime and allow President Trump to add to the $350 million he has already made off his own mean coin. We cannot continue to ignore the clear conflicts of interest between the President's personal crypto ventures and his support of industry-friendly legislation. This committee has a long history of advancing policies that protect consumers, investors, and our financial stability. We should not undermine those practices by allowing the crypto industry to write its own rules. Thank you, Mr. Chairman, and I yield back.