TLDR

  • Rep. French Hill elected as new House Financial Services Committee chair, replacing Patrick McHenry

  • Hill is known for pro-crypto stance and has authored multiple cryptocurrency bills

  • Focus areas include stablecoin regulation and investigating “Operation Chokepoint 2.0”

  • Appointment aligns with President-elect Trump’s pro-crypto administration plans

  • Texas exploring creation of state Bitcoin reserve through new bill

Rep. French Hill (R-Ark.) has been elected as the next chair of the House Financial Services Committee, marking a new chapter in cryptocurrency legislation and financial oversight. The decision came after a second-round vote where Hill emerged victorious over other contenders, including Rep. Andy Barr of Kentucky.

Hill will succeed retiring Chair Patrick McHenry, who announced his departure in December 2023. McHenry’s tenure was marked by several crypto-focused initiatives, including the Financial Innovation and Technology for the 21st Century Act (FIT21) and efforts to establish federal stablecoin regulations.

The Arkansas Republican brings substantial experience to the role, having previously served as chair of the committee’s digital asset panel. Throughout his career, Hill has championed various cryptocurrency bills and demonstrated a clear understanding of blockchain technology and digital assets.

In his new position, Hill will oversee a broad range of responsibilities, including supervision of the Federal Reserve, Wall Street regulations, and cryptocurrency oversight. The committee’s scope has expanded in recent years to accommodate the growing influence of digital assets in the financial sector.

One of Hill’s primary focuses will be addressing what critics refer to as “Operation Chokepoint 2.0” – alleged regulatory actions that limit cryptocurrency companies’ access to banking services. During a December 4 hearing, Hill emphasized his stance on this issue, stating, “Legal businesses in this great country should have the freedom to bank and have financial services.”

The appointment comes at a time when the incoming administration has shown strong support for cryptocurrency innovation. President-elect Donald Trump has recently made key appointments, including David Sacks as AI and Crypto Czar and Paul Atkins as the new SEC Chairman.

Hill has been vocal about regulatory oversight, particularly regarding the SEC. In October, he called for the departure of outgoing SEC Chair Gary Gensler, citing concerns about “fear-mongering” within the federal agency.

The new chairman’s selection surprised some House members, as Rep. Andy Barr, who has close ties to Majority Leader Steve Scalise, was considered a strong contender. Hill’s previous alignment with former Speaker Kevin McCarthy had been viewed as a potential challenge to his selection.

In parallel developments, Texas Rep. Giovanni Capriglione has introduced a bill to establish a strategic Bitcoin reserve at the state level. The proposed legislation would allow Texas to invest in Bitcoin through its treasury and accept Bitcoin donations, with state agencies managing digital assets to grow the reserve.

Hill’s collaborative approach and technical expertise in cryptocurrency matters could prove valuable for passing legislation in the next congressional session. He has built relationships across party lines and co-authored multiple crypto bills, suggesting a pragmatic approach to financial regulation.

The incoming chairman has expressed particular interest in stablecoin regulation and cryptocurrency market structure. His previous work includes introducing bills to create a comprehensive framework for stablecoins, aiming to balance innovation with consumer protection and financial stability.

Hill joined efforts to challenge SEC guidance that required banks to record customer crypto holdings as balance sheet liabilities, though this resolution was ultimately vetoed by President Biden.

The committee under Hill’s leadership is expected to continue its focus on creating clear regulatory frameworks for digital assets while addressing concerns about banking access for cryptocurrency businesses.

The new congressional session begins on January 3, when Hill will officially assume his role as chairman of the House Financial Services Committee.

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