The influential Treasury select committee has launched an inquiry into the role of crypto-assets in the UK today as lawmakers look to shore up the UK’s financial system against another crypto crash.
In a statement today, the committee called for submissions to examine whether crypto is likely to replace traditional ‘fiat’ currencies, what opportunities and risks the use of crypto-assets pose for individuals and the economy, and their impact on social inclusion.
MPs said they will be looking to assess how regulation could protect consumers without “stifling innovation”.
“Crypto-assets have the potential to bring new and innovative changes to the UK financial system, the economy and broader society. However, there are also significant concerns around their use to launder funds, purchase illegal products, and evade international sanctions,” said Mel Stride, chair of the committee.
“In recent months, the value of most crypto-assets has fallen dramatically. As a Committee, we will be investigating the opportunities and risks that crypto presents, where additional regulation may be required, and the lessons the Government can learn from other countries.”
The committee will look to investigate whether regulation could benefit crypto-asset start-ups by “improving consumer trust and resilience”, and the potential impact of distributed ledger technology on financial institutions, including the Bank of England.