The United States House Committee on Financial Services released a memorandum detailing the points of give-and-take during the hybrid hearing on digital assets to be held on Wed at 10:00 am ET.

Addressing the members of the Financial Services Committee, the memo confirmed that the hearing will dedicate one console to six executives from the crypto community as witnesses. The listing includes Circle's Jeremy Allaire, FTX's Sam Bankman-Fried, Bitfury Group's Brian Brooks, Paxos' Charles Cascarilla, Stellar's Denelle Dixon and Coinbase's Alesia Haas.

The hearing, entitled "Digital Avails and the Future of Finance: Understanding the Challenges and Benefits of Financial Innovation in the United states of america," seeks to discuss 4 key aspects: crypto exchanges, stablecoin offerings, regulatory concerns in digital assets and federal regulatory responses.

The brief reads, "This hearing will examine some of the new products and services offered by major digital assets marketplace participants, the role of cryptocurrency market place exchanges in facilitating investments in cryptocurrency and related transactions, the growth of stablecoins and other digital avails, and the current regulatory mural governing these new products and services."

While the memo highlights the role of exchanges in serving as an entry point for crypto investors, the hearing will also talk over decentralized finance, given its potential to "replicate and replace conventional delivery of fiscal services such as loans, asset trading, insurance, and other services."

The document also talks nigh the differences in operational structures and reserve compositions of stablecoins every bit compared to fiat currency, adding:

"Cryptocurrency markets have no overarching and centralized regulatory framework, leaving investments in the digital avails space vulnerable to fraud, manipulation, and abuse. Digital assets and related service providers can present money laundering, terrorist financing, sanctions evasion, kleptocracy, and other illicit finance risks."

Acknowledging the rise of cryptocurrencies, Congress hopes to develop a articulate opinion on primal bank digital currencies (CBDC) based on the ongoing report conducted past the Federal Reserve to "examine the potential benefits and risks of CBDCs and its touch on the U.South. domestic payments system."

On Tuesday, Circle's Allaire released a statement ahead of the hearing, stating:

"In a earth where money becomes a core characteristic of the cyberspace, the U.S. should aggressively promote the use of the dollar as the main currency of the internet, and leverage that every bit a source of national economic competitiveness, security and a major upgrade needed for more efficient and inclusive financial services."

Allaire'south firm, Circle is the sole issuer of dollar-backed stablecoin USD Coin (USDC). He suggested that the U.S. authorities can brand mainstream use of the stablecoin via dollar-denominated reserves. "Policy frameworks need to back up an open and competitive playing field, and allow new technologies to flourish," he added.