- HFSC regulates the overall issues related to the financial sector of the US.
- The committee has 6 subcommittees to help in its regulations.
The U.S. House Financial Services Committee (HFSC) is the committee that oversees the jurisdiction over issues related to the banking system, housing, insurance, and securities market. It also has jurisdiction over monetary policies, international finance, and monetary organizations.
The main purpose behind the formation of the committee is to oversee all components of the US’s financial and housing services. The committee is one of the most powerful committees of the United States House of Representatives. It has 52 seats, out of which 29 are for Republicans and 23 for Democrats.
The committee was established in December 1865 to take over responsibilities previously held by the Ways and Means Committee. The committee was previously known as the Committee on Banking and Currency. It was in 1968, when the committee got its present name.
Currently, the chairman of the committee is Patrick McHenry serving his tenth term as the representative of North Carolina’s 10th Congressional District. Maxine Waters, a Democrat Congresswoman from California, is serving as the ranking member.
The committee has jurisdictions on the following matters:
- Banking sector
- Economic stabilization
- Financial aids to commerce and industry (other than transportation)
- Insurance
- International Finance
- Money and credit policies
- Public and private housing
- Securities and exchanges
- Urban development
The committee also acts as a watchdog for the following agencies:
- The Federal Reserve
- The Securities and Exchange Commission
- The National Credit Union Administration
- The Export-Import Bank
- The Federal Housing Finance Agency
- The Department of Housing and Urban Development
- The Federal Deposit Insurance Corporation
- The Office of the Comptroller of the Currency
Six Subcommittees of HSFC
The committee has six subcommittees. These subcommittees help to regulate various sectors deliberately and efficiently. They act as a watchdog for the particular sector to which they regulate and frame the regulatory policies maintaining efficient management. These six subcommittees are:
1. Subcommittee of Capital Markets
Composed of 23 members, the subcommittee has jurisdiction over securities, futures, forwards, and options. The main objective is to protect the investor’s interest and confidence in the capital market. It also regulates investment companies, auditing firms, and last but not the least, the Securities and Exchange Commission.
2. Subcommittee on Financial Institutions and Monetary Policy
Composed of 23 members, the subcommittee has jurisdiction over financial services, economic growth, stabilization, and domestic monetary policy. The main objective is to provide consumers with access to financial services. It also regulates the Consumer Financial Protection Bureau, the Federal Reserve System, and the Office of the Comptroller of the Currency.
3. Subcommittee on Housing and Insurance
Composed of 19 members, the subcommittee has jurisdiction over housing policies, community development, and insurance schemes. The main objective is to protect consumers’ exploitation in buying houses and insurance policies. Moreover, it has regulation over The Federal Insurance Office, The Federal Housing Finance Agency, and Empowerment Zones.
4. Subcommittee on National Security, Illicit Finance, and International Financial Institutions
Composed of 16 members, this subcommittee has jurisdiction over national security threats, terrorism, drug sale proceeds, and international investment policies. The main objective is to protect the nation from security threats and to regulate international financial institutions. It also regulates the International Monetary Fund (IMF), and the Office of Terrorism and Financial Intelligence.
5. Subcommittee on Digital Assets, Financial Technology, and Inclusion
Composed of 18 members, this subcommittee has jurisdiction over cryptocurrencies, stablecoins, and Central Bank Digital Currencies (CBDCs). The main objective is to protect the investor’s interest in crypto exchanges. It also regulates Fintech firms, Non-bank firms, and the Consumer Financial Protection Bureau.
6. Subcommittee on Oversight and Investigations
Composed of 12 members, the subcommittee has jurisdiction over all agencies, departments, operations, and programs. The main objective is to act as a watchdog for all agencies operating within the nation. It acts as an investigator and conducts research and analysis regarding various matters.
Altogether, these form the HFSC. Looking after all the patrons of financial standings, these committees and their jurisdiction make the House Financial Service Committee the most powerful House’s committee.
