Rep. French Hill says SEC and CFTC actions lack permanence, urges Congress to pass CLARITY Act

Representative French Hill, chair of the House Financial Services Committee, stated that while US financial regulators are working to address the crypto sector, their recent steps lack the lasting impact of Congressional legislation.

Calls to Congress for Legislative Action

In an interview on Fox Business, Arkansas lawmaker French Hill highlighted ongoing efforts from the US Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) to manage digital asset regulation. Hill noted that these actions followed the Senate’s failure to approve the Digital Asset Market Clarity (CLARITY) Act last month.

Hill stated that proposals from both regulatory bodies cover certain aspects of crypto oversight and enforcement, but he believes they do not provide the comprehensive solution needed. He called for legislative clarity to establish a stable and leading environment for the US in the digital asset and blockchain sector.

Hill emphasized that the US needs a permanent law change to secure leadership in digital assets and blockchain technology, expressing hope that the CLARITY Act could still pass during the upcoming lame duck session.

Regulatory Agencies and Personnel Changes

Hill’s remarks followed announcements from SEC chair Paul Atkins and CFTC chair Michael Selig that both agencies intend to continue developing crypto regulations as directed by US President Donald Trump. The SEC and CFTC are primary regulators for securities and commodities, responsible for setting rules in traditional and digital financial markets.

Recent departures have left vacancies within both agencies. SEC Commissioner Hester Peirce announced her resignation last week, leaving Chair Atkins and Mark Uyeda as the only remaining SEC commissioners. Michael Selig now serves as CFTC chair and its sole commissioner after other seats became vacant.

With a total of seven vacancies across the leadership ranks of both agencies, regulatory workflow may slow, and decision-making could become more challenging until new appointments occur.

Mini dictionary: Lame duck session — The period between an election and the inauguration of a new Congress, when outgoing lawmakers still hold office but may soon be replaced.

Upcoming Congressional Window

Hill pointed out that the Senate will be in session for only 22 days between the midterm elections in November and the swearing-in of new lawmakers in 2027. This short legislative window could be critical for the future of the CLARITY Act, as election outcomes may influence how representatives vote on pending crypto legislation.

During the post-election period, legislators who are not returning may feel freer to vote for key measures, potentially impacting the fate of the CLARITY Act.

Hill has expressed optimism that Congress could still pass the CLARITY Act during the upcoming session, contending that a legislative framework is necessary to secure the US’s position at the forefront of digital asset innovation.