Regulation

Lawmakers Say FinTech, Not Dodd-Frank, Should Be GOP Focus

U.S. Representative Patrick McHenry thinks it’s time for the GOP to move on from its mission to kill the Dodd-Frank Act. McHenry, a front-runner to become the next chairman of the Financial Services Committee, believes Republicans should instead focus on legislation that will help prevent the next economic crisis, as well address issues involving financial technology.

“We need to get out of this Dodd-Frank morass we’ve been in,” McHenry said in an interview on Wednesday (July 11), according to Bloomberg. “The next crisis will look different from the previous crisis, so we need to be forward-looking when it comes to legislating.”

With that in mind, McHenry said he hopes, in the next Congress, to continue his work on financial technology topics such as how to regulate cryptocurrencies, which he believes have “growth potential” but also “a massive amount of fraud that is taking place.” While he wouldn’t specify what will prompt the next financial crisis, McHenry revealed rising interest rates will be a factor.

“In a rising interest rate environment, the pains of an institution [become] much more ominous,” he said.

Though McHenry is seen as the committee’s next chairman, he said he will wait until after the November elections to decide whether to pursue it or go after a higher leadership position, such as House whip. If Democrats win control of the House in November, Representative Maxine Waters of California will run the financial services panel. Waters has repeatedly called for President Donald Trump’s impeachment and has been one of Congress’ biggest critics of big banks.

“I can work with Maxine,” McHenry said. “Maxine is going to have to make a decision, though, on how she intends to operate. I think there have been some dangerous comments she has made that I disagree with. She will then have to make a decision whether or not she is going to be a policy maker or simply resist.”

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