Members of the Treasury Committee met with a number of leading
regulators and financial firms in Washington and New York as they
look ahead to high-profile scrutiny sessions next month.
The Committee had meetings with officials from organisations
including the International Monetary Fund, the SEC, the New York
Stock Exchange, the US Treasury and Congress, where they asked
questions about American financial policy and its impact on the
US and global economy. The meetings were used to gather informal
testimony from experts across the Atlantic to inform the
Committee’s scrutiny of the UK’s Treasury and
regulators.
They will also help to inform current UK Treasury Committee
inquiries. The Committee looked at the US approach to Central
Bank Digital Currency, cryptoasset regulation (see Crypto report) and
Quantitative Tightening. MPs also heard how sexism is tackled in
the US financial services industry (see Sexism in the City), the US
approach to ensuring small and medium-sized businesses in America
can access capital (see SME Finance), and how the US
is doing on tackling inflation (see Bank of England Monetary Policy
Reports).
Other areas which the Committee discussed were the two nations’
taxation systems as well as major recent innovations in US
economic policy, such as the Inflation Reduction Act, which have
spillover effects into the UK system.
Chair of the Treasury Committee, ,
said:
“Now that the UK financial regulators have to consider
competitiveness, the Treasury Committee was able to visit the
world’s biggest financial market to meet a wide range of senior
regulators, private sector businesses, politicians and the New
York Stock Exchange so that we can ask better-informed
questions.”
OTHER MEMBER COMMENTS
Dame MP, member of the Treasury
Committee, said:
“Our visit provided key insights into how UK financial services
can become more competitive as new markets open up - in
particular we learnt a good deal about the potential
opportunities, as well as the risks, of digital
currencies.”
Dame , member of the Treasury
Committee, said:
“It was very informative to talk directly to those who are
regulating financial services in a different jurisdiction and
perceive the similarities as well as the differences in approach.
This was especially true in the context of new technologies
including cryptocurrencies and the blockchain.”
, member of the Treasury
Committee, said:
"Ultimately, the financial system affects people's lives, in
terms of their personal finances, and in their household bills.
We have seen the effects of decisions in the past, where
financial regulation has failed badly and also where it has
worked. With digital transactions and the prospect of digital
currencies gathering pace, it has been very important to get the
perspective of US regulators, businesses, and legislators. We can
now use that perspective to scrutinise decisions taken at
Westminster that impact on our constituents."
, member of the
Treasury Committee, said:
“Our visit showed clearly the huge potential for UK businesses in
the US and for US businesses to invest in the UK. The UK is an
attractive destination for among other sectors crypto businesses
as the Government and the Bank of England have taken a proactive
approach. With a national system of regulation as opposed to the
multi layered state and federal regulatory framework in the US we
have the scope to be more user-friendly for
investors.”
ENDS
Notes to editors:
· All meetings took place
under Chatham House rules. We, therefore, will not be releasing
any further details of the contents of each
meeting.
