Key facts
- US financial regulators' actions on digital assets lack the long-term stability of legislation, according to Rep. French Hill.
- Hill believes SEC and CFTC rulemaking has not met the standard of legislative solutions.
Representative French Hill stated that actions by the US Securities and Exchange Commission and Commodity Futures Trading Commission on cryptocurrency regulation are insufficient. Hill expressed hope that the Digital Asset Market Clarity (CLARITY) Act could still pass before the next congressional session in 2027, emphasizing the need for permanent legislative changes to bolster America's position in digital assets and blockchain technology.
The lack of clear, comprehensive legislation for digital assets in the US creates regulatory uncertainty for businesses and investors, potentially hindering innovation and the adoption of blockchain technology.
Representative French Hill, chairman of the House Financial Services Committee, stated that while US financial regulators are taking steps to address digital assets, their actions fall short of the clarity and stability provided by legislation. In a Wednesday interview with Fox Business, Hill, an Arkansas lawmaker, noted that the Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) have proposed rules for crypto oversight following the Senate's failure to pass the Digital Asset Market Clarity (CLARITY) Act last month.
Hill expressed hope that the CLARITY Act could still be passed during the upcoming lame duck session of Congress, emphasizing the necessity of permanent legal changes to ensure America's leadership in digital assets and blockchain technology. His comments followed announcements from SEC Chair Paul Atkins and CFTC Chair Michael Selig regarding plans to advance crypto regulation, reportedly at the direction of President Donald Trump.
The Senate has a limited window of 22 days in session between the US midterm elections in November and the start of the new Congress in 2027. The outcomes of the elections could influence votes on the CLARITY Act, as lawmakers will be aware of their potential return to Congress. As of Wednesday, both the SEC and CFTC have leadership vacancies, with Commissioner Hester Peirce having recently resigned from the SEC, leaving only Chair Atkins and Commissioner Mark Uyeda. Selig currently serves as the sole commissioner at the CFTC.
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