It’s almost certain that crypto supporter Rep. French Hill will be the incoming House Financial Services Committee chairman in the next Congress. The Republican House steering committee selected Hill on December 12, a decision that will need to be endorsed by House Republicans during the next Congress.
The Thursday announcement stated that French Hill would replace the retiring Chair, Patrick McHenry, in a key position that most people believe could help advance legislation associated with the digital asset space. Accepting the nomination, Hill stated in an X post, “I am humbled that my colleagues have placed their trust in me to lead the House Financial Services Committee as their next Chairman.”
Hill Expected to Drive Initiatives on Crypto Regulation
As the incoming chairman of the Financial Services Committee, Hill, who defeated fellow Republicans Andy Barr, Frank Lucas, and Bill Huizenga in the vote held on Thursday, is expected to spearhead initiatives on banking policy and cryptocurrencies as the new Congress begins business in January. According to Fox Business’ Eleanor Terret, there is already a rumor that the pro-crypto Representative could lead the next Congress into investigating the industry’s debunking claims.
Since his election to Congress, French Hill has chaired a committee panel spearheading the advancement of crypto assets. He has also been heavily involved in advancing cryptocurrency legislation, which included a bill aimed at regulating stablecoins and one addressing their market structure. According to the current chair, Patrick McHenry, Financial Services Committee chair nominee Hill headed the Financial Innovation and Technology for the 21st Century Act (FIT21) bill. The bill explains the role of regulatory bodies in dealing with crypto assets.
Financial Services Committee Oversees the SEC
French Hill is the current chairperson of Congress’ Digital Assets, Financial Technology, and Inclusion Subcommittee and is said to have a good understanding of the crypto industry’s technical and business aspects. His election as the incoming House Financial Services Committee chairman points to the GOP’s commitment to creating a conducive environment for structural reforms and the regulation of stablecoins in the Congress session that begins on January 3, 2025.
The Financial Services Committee acts as an overseer of the U.S. Securities and Exchange Commission (SEC). It works in partnership with other congressional panels to regulate financial markets, including the emerging cryptocurrency sector. Under his leadership, market players have great expectations on Rep. French Hill, especially with the renewed enthusiasm and expectations that legislation will bring clarity on whether to treat cryptocurrencies as commodities or securities besides establishing reserve requirements for the stablecoin sector.
French Hill is Highly Connected to Lobbyists and Crypto Industry Executives
Hill co-authored the FIT21 Act, a bipartisan bill that went through the House but failed to go through the Senate in early 2024. He has courageously spearheaded efforts to address stablecoin regulation and is famed for bringing Republicans and Democrats close to a compromise. The Financial Services Committee chairmanship nominee has a lot of expertise and is highly connected with lobbyists, executives, and industry groups, making him stand out in the Congress on matters relating to crypto.
The crypto-friendly Rep. has also pledged to investigate the controversial “Operation Choke Point 2.0,” in which regulators allegedly tried to limit the crypto industry’s access to banking services. Many industry players believe It’s Hill’s sentiments on this and other related issues make him a good advocate for crypto policies and that he will become an effective bridge-builder between the authorities and the digital asset industry.
Conclusion
The November 5 Presidential election brought in a majority of Republicans in both Congress and the Senate, and many expect that the relatively pro-crypto team will advocate for lighter-touch crypto regulations. Nonetheless, passing any severe crypto regulations must garner support from bipartisan members in the Senate, where they need at least six Democratic votes. French Hill’s ability to work across the aisle, which played a key role in his selection, will enable him to use the same magic that would see meaningful crypto legislation gaining traction in 2025.