Jack: “Main Street Meets Crypto: What Digital Assets Mean for Small Businesses”
WASHINGTON, D.C. – Today, the House Small Business Subcommittee on Innovation, Entrepreneurship, and Workforce Development is holding a hearing titled “Main Street Meets Crypto: What Digital Assets Mean for Small Businesses.”
Subcommittee Chairman Brian Jack’s opening statement as prepared for delivery:
Welcome to today’s hearing, “Main Street Meets Crypto: What Digital Assets Mean for Small Businesses.”
Our hearing is especially timely, as our colleagues in the Senate are expected to vote this afternoon on whether to invoke closure and advance the much-anticipated Digital Asset Market Clarity Act, commonly known as the Clarity Act.
This is our Subcommittee’s second hearing of the 119th Congress, and I thank Ranking Member Scholten for her ongoing partnership as we address how innovation promotes economic growth and job creation by small businesses.
Our Subcommittee’s previous hearing focused on the economic impact of Minor League Baseball on communities across America.
That hearing proved to be a home run, as we welcomed former professional baseball players, Minor League Baseball executives, and even three beloved mascots to this room for a constructive and bipartisan conversation about America’s pastime.
Today, we are focused on what digital assets and blockchain technology can mean for small businesses across America.
When many Americans hear the word “crypto,” they think about Bitcoin, investing, or perhaps volatility in price.
But digital assets are not all the same, and they do not all serve the same purpose.
Stablecoins, for example, are digital assets designed to maintain a stable value, often tied to the U.S. dollar, and can be used to move money quickly over blockchain networks.
Today, let’s bring that conversation to Main Street.
What could this growing technology mean for a restaurant owner accepting a payment?
Or, a contractor awaiting payment for a completed job?
Or, an entrepreneur looking for the capital to expand a business?
Today, I want to focus our hearing on three topics.
Through this innovative technology:
1. Will small businesses be able to keep more of every sale?
2. Will small businesses be able to get paid quicker?
3. How can small businesses utilize this technology?
First, how can small businesses keep more of every sale?
For a small business operating on narrow margins, every dollar matters.
Consider something as simple as a five-dollar purchase at a local coffee shop.
The price of that transaction through certain payment processors can cost the small business in excess of 30 cents.
30 cents may not sound like much to some.
But, multiply it by hundreds of transactions a day, every day, and those costs add up quickly.
If digital payment technologies can safely lower the cost of accepting a payment, that means more money available for payroll, inventory, marketing, and growth.
Second, how can small businesses get paid sooner?
According to the Federal Reserve’s 2025 Report on Employer Firms, 51 percent of employer firms cited uneven cash flow as a financial challenge.
A restaurant still needs to order food.
A retailer still needs to restock its shelves.
A contractor still needs to make payroll.
And Main Street works nights, weekends, and holidays.
Its money should be able to move then, too.
Many stablecoin networks can operate around the clock, allowing payments to move directly over blockchain infrastructure without being limited to traditional banking hours.
These tools may also help small businesses reach customers and suppliers beyond their local markets. For a small business paying an overseas supplier or selling to a customer abroad, stablecoins may offer another way to move dollars across borders more quickly at a lower cost.
The subcommittee is interested in understanding whether this technology can help small businesses access money they have already earned more quickly, expand their reach, and reduce costs – and what limitations or risks may remain.
Finally, how can small businesses utilize this technology? Most small business owners do not have a compliance department or a team of technology experts.
They are running a business, managing employees, serving customers, paying bills, and trying to make payroll.
If we expect them to consider using digital assets, they need practical answers to some basic questions.
What is the difference between Bitcoin and a stablecoin?
What happens after a customer makes a payment?
How does the business convert that payment into dollars?
What are the tax and reporting responsibilities?
And, how does a small business protect itself and its customers from fraud?
A small business owner should not have to become an expert in blockchain technology before deciding whether it could help the business.
Clear rules, practical guidance, and a better understanding can help entrepreneurs assess the opportunities and the risks to make the decision that is right for them.
I expect our witnesses today to help us answer these questions.
Mr. Shirzad has a profound understanding of the broader digital asset ecosystem.
Mr. Leventhal has first-hand experience with how digital payments work for restaurants and other small businesses on Main Street.
And, Dr. Wu can help us examine both the opportunities and the risks.
I look forward to our conversation, and I thank each witness for their testimony.
Immediately after we adjourn, we will host a reception across the hall. More details will be shared at the conclusion of this hearing, but all are invited to attend.
I now recognize the Ranking Member, Representative Scholten, for her opening remarks.
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