French Hill Says Crypto Needs Congress Not Just Regulators

Rep. French Hill says recent crypto actions by the SEC and CFTC are useful, but cannot replace legislation needed to create lasting rules for the industry.

The Arkansas Republican and House Financial Services Committee chairman said regulators have moved quickly to provide more certainty for digital assets after Congress stalled the Clarity Act. However, he argued that exemptions, guidance and agency rulemaking do not offer the same long-term protection as a law passed by Congress.

Speaking to Fox Business, Hill praised SEC Chairman Paul Atkins and CFTC Chairman Mike Selig for using their existing powers to define how digital assets and digital commodities can operate within the U.S. financial system.

Still, Hill said those efforts are not enough. He pointed to his work on FIT21 in the previous Congress and the Clarity Act in the current session as examples of the legislation needed to establish a permanent market structure for crypto.

The Clarity Act would have created clearer rules for digital assets and divided regulatory responsibilities between the SEC and CFTC. The bill failed to advance in the Senate last month after a 49-50 procedural vote, leaving regulators to fill the gap.

Since then, the SEC has moved forward with initiatives including an innovation exemption for tokenized stocks and proposed rules covering crypto custody by investment advisers and funds. The CFTC has also advanced crypto-related rulemaking and considered bringing more digital-asset markets under federal oversight.

Hill believes those measures can provide temporary relief but remain vulnerable to legal challenges or changes under a future administration. Congressional legislation, by contrast, would create a more durable framework for the industry.

For years, crypto companies and advocates have pushed Washington for clearer market-structure rules. The failure of the Clarity Act has shifted much of that focus toward the SEC and CFTC, but Hill believes Congress still needs to finish the job.

He said there is still a chance for the bill to return during the lame-duck session later this year. Whether lawmakers can revive legislation that recently failed in the Senate remains uncertain, but Hill continues to argue that permanent congressional action is needed if the U.S. wants to remain a leader in digital assets and blockchain technology.