Rep. French Hill was elected the new Chairman of the House Financial Services Committee, on December 13th. This gives him considerable influence in banking and financial regulation within the United States.
In a recent CNBC interview, Rep. Hill outlined his top priorities for the new role.
Hill’s three main goals were: to reform the financial landscape, foster innovation, and address challenges in the banking sector and digital assets sectors.
From Banks To Blockchain: Rep. French Hill’s Pro-Crypto Agenda
He stressed the need to reduce regulatory barriers that make it hard for banks to achieve profit and attract capital.
Hill stated that excessive regulation has led to the consolidation of financial institutions, which favors larger ones.
He called for tailored regulatory approaches that would serve banks of all sizes and help them remain profitable, secure, and able to meet customer needs.
Second, Hill discussed the challenges of capital formation on public markets.
He attributed the trend of fewer publicly traded companies in America to the high costs of going public and the complexity of doing so.
Hill expressed concern that the current climate discourages small business owners and limits investment options for families, pensions, and 401(k).
He called for reforms that would make it easier for companies to become public and to remain publicly traded.
Hill’s third priority is to establish a clear regulatory framework for digital assets.
He criticised the current “regulation through enforcement” under SEC Chairman Gary Gensler and argued that it hinders innovation with blockchain technology.
Hill also stressed the importance of creating regulations that encourage technological advancements and ensure the U.S. is competitive in digital assets.
He expressed his support for legislation that would establish a stablecoin backed by the dollar under U.S. laws, which is a priority of the Republican majority in Congress.
What Hill’s leadership means for crypto regulation and stablecoins by 2025
Hill is well-known for his support of digital assets. Hill was the former chair of the subcommittee for digital assets and succeeded Patrick McHenry. McHenry had been a crypto advocate since 2000.
Hill’s leadership marks the beginning of a crypto-friendly shift in the administration of President-elect Donald Trump.
Trump nominated crypto-proponents including Paul Atkins to oversee the SEC, and David Sacks for the White House’s “crypto czar”.
Hill expressed optimism regarding the advancement of crypto regulation and stablecoin legislation in Congress. Hill said that efforts are likely to increase in 2025.
Hill has also highlighted fintech’s contribution to enhancing the competitiveness of small banks through AI tools in customer service and compliance.
He supports a balanced approach to regulation that encourages collaboration between traditional and fintech banks in order to ensure the safety of the financial system.
Hill also dismissed concerns that the U.S. has too many banks, and saw it as a way to improve banking access in rural areas.
