Arkansas Republican French Hill won the House Financial Services Committee chairmanship on Thursday with his strong support for the crypto industry.
House of Representatives and Crypto
Hill will take over as committee chairman from North Carolina Republican Patrick McHenry, who will not seek re-election this year. McHenry was known as an active advocate for crypto assets.
Hill received an “A” rating from the crypto asset advocacy group Stand With Crypto, which is backed by Coinbase. He also supported House Resolution 109, which sought to reverse the U.S. Securities and Exchange Commission’s (SEC) SAB 121 guidance.
So why is it important to be elected President? Cryptocurrency laws in the USA will complete the process with the approval of the House of Representatives Committee, the approval of the House and then the approval of the Senate, and will go before the President of the USA. Since Republicans are the majority in the 2nd confirmation stage and President Trump is crypto-friendly, he has the strength to pass the 3/3 stages. Since the Financial Services Committee oversees public institutions related to cryptocurrencies and plays an important role in the law-making process, it was extremely important that the Chairman here was crypto-friendly. Moreover, the fact that a cryptocurrency-friendly person has come to such an important position reveals the approach to crypto within the Republican party. For all these reasons, Hill and his new mission are a victory for investors.
Criticisms Made
The representative from Arkansas accused the Federal Deposit Insurance Corporation (FDIC) of forcing banks to cut ties with industries like crypto.
Hill promised in November that the House Financial Services Committee would work with President-elect Donald Trump to stop the crackdown and conduct an investigation.
House Resolution 109 was passed by the House and Senate earlier this year but was vetoed by President Joe Biden in May. A House effort to overturn the veto in July fell short of the required two-thirds majority.
SAB 121 is a guidance publication stating that certain companies must classify crypto assets as liabilities on their balance sheets even if they passively hold them for customers. Thus, the nightmare of the Biden administration of the last 4 years comes to an end.
Hill’s committee chairmanship could play a key role in shaping the future of regulatory policies in the crypto industry. The steps the industry will take under this new leadership are being closely monitored in terms of the place of crypto assets in the financial system.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that crypto currencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
