The U.S. House of Representatives has created a new subcommittee focused on digital assets, as one of its first moves under the control of the Republican Party.

The Subcommittee on Digital Assets, Financial Technology, and Inclusion will be the first in the U.S. specifically focused on digital assets and will operate under the House Financial Services Committee.

The new subcommittee will provide rules for federal regulators on digital currencies, develop policies to promote digital financial technology, and strengthen diversity and inclusion in the industry.

The subcommittee will be chaired by Republican Congressman French Hill, who has spearheaded efforts to explore a U.S. central bank digital currency.

Hill stated that “It is our job to work across the aisle and promote responsible innovation while encouraging FinTech innovation to flourish safely and effectively in the United States.”

The formation of the new subcommittee follows a House Financial Services Committee inquiry into the multibillion-dollar collapse of the Bahamas-based crypto exchange

The incoming chair of the committee, McHenry, said that the Securities and Exchange Commission had not done enough against bad actors in the crypto market.

This inquiry was held amid a flurry of legislative activities in the U.S. as lawmakers rushed to address perceived regulatory shortcomings following the FTX collapse.

In December, Senator Elizabeth Warren introduced a bill that would require U.S. crypto businesses to follow the same know-your-customer rules as banks to prevent money laundering.