Arkansas Republican French Hill gained the chairmanship of the House Financial Services Committee on Thursday, showcasing strong support for the crypto sector. He will take over from North Carolina Republican Patrick McHenry, who is known for being an active advocate for crypto assets.
House of Representatives and Crypto
Hill has received an “A” rating from Stand With Crypto, a crypto asset advocacy group backed by Coinbase. He has also supported House Resolution 109, which aims to reverse the SEC‘s SAB 121 directive.
Why is his election significant? In the U.S., crypto legislation progresses through House committee approval, House approval, and then Senate approval before reaching the President. The Republicans hold a majority in two of these stages, and with President Trump being crypto-friendly, they are well-positioned to navigate these processes. The chair’s crypto-friendly stance in the Financial Services Committee, which oversees public institutions related to cryptocurrencies, is crucial for the legislative process. Thus, Hill’s appointment is a victory for investors.
Criticisms Made
The Arkansas representative accused the Federal Deposit Insurance Corporation (FDIC) of pressuring banks to cut ties with sectors like crypto. Hill pledged that the House Financial Services Committee would work with elected President Donald Trump to halt this pressure and conduct an investigation in November.
House Resolution 109 passed in both the House and Senate earlier this year but was vetoed by President Joe Biden in May. The House’s efforts to override the veto in July failed to achieve the necessary two-thirds majority.
SAB 121 is a guidance publication that requires certain companies to classify crypto assets as liabilities on their balance sheets, even if they hold them passively for clients. This move marks the end of a challenging period under the Biden administration for the crypto sector.
Hill’s chairmanship could play a vital role in shaping the future of regulatory policies in the crypto industry. The actions taken by the sector under this new leadership will be closely monitored regarding the placement of crypto assets within the financial system.
