In announcing his candidacy for Chairman of the House Financial Services Committee, Representative French Hill of Arkansas stated that he plans to strengthen community banking and investigate Operation Choke Point 2.0, which restricts the crypto industry’s access to traditional banking services. Hill is competing with candidates including Rep. Andy Barr of Kentucky, Rep. Frank Lucas of Oklahoma and Rep. Bill Huizenga of Michigan following the retirement of current chairman Patrick McHenry.
Operation Choke Point 2.0
Hill stated that Operation Choke Point, which was launched during the Obama administration and brought additional regulatory control to some industries, continued for sectors such as crypto assets under the Biden-Harris administration. “Congress must fully investigate whether the actions and policies of agency personnel are consistent with applicable law, regulation, and policy,” Hill said.
Hill’s plan, which he introduced in response to banking regulators’ stance on crypto, is the first item among 14 proposed policy priorities. Hill has stated that if he becomes chairman of the financial services committee, he plans to introduce the first two bills of stablecoin and market structure legislation. Hill has deeper connections to the industry, lobbyists say.
Dynamics of Competition
Andy Barr gained momentum after last week’s election by more openly supporting Donald Trump. This puts Barr at odds with the MAGA wing of the Republican party, raising slight doubts about Hill’s loyalty to Trump. Hill was among a small number of lawmakers who allied with former Vice President Kevin McCarthy last year rather than directly backing Trump-backed Rep. Mike Johnson.
Hill and Barr are frontrunners in the race to lead the Financial Services committee. While both representatives are pro-crypto, Hill is known to have a more solid track record of working with the industry. The winner is expected to be determined before the secret ballot for the chairmanship of the committee.
Hill’s priority in financial services is considered an important indicator of his candidacy for the committee chairmanship. If elected, Hill aims to develop more flexible and supportive policies in areas such as crypto and digital assets.
In this context, regulations in the financial services sector and the future of the crypto industry may be shaped depending on the preference of the possible committee chairman. While Hill’s strong connections and past work in the industry support his leadership, Barr’s support for Trump also stands out as an important factor.
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.
