United States Representative French Hill recently appeared on CNBC and emphasized the need for a comprehensive crypto market structure bill in the US. According to Hill, this legislation is a top priority for the Republican Party, with GOP Majority Leader Steve Scalise aiming to introduce it within the first 100 days of the upcoming legislative session.
Regulatory Uncertainty Hinders US Crypto Industry
Representative Hill also criticized the current regulatory approach under Securities and Exchange Commission (SEC) Chair Gary Gensler. He stated that the lack of clear rules and regulations is hindering the growth of the US crypto industry, making it difficult for companies to operate within the country.
"We don’t have rules of the road," Hill said. "Under Chairman Gensler, we had just regulation by enforcement. This is not helping America succeed, not helping technological advance, innovation for Web3, [or] the use of blockchain both in publicly traded companies and in financial services."
The approval of a market structure bill should help alleviate the regulatory uncertainty that has plagued the US crypto industry for years. Proponents of such bills argue that pro-crypto legislation could pave the way for the US to foster digital asset innovation and prevent crypto firms from offshoring.
Republican Party’s Victory and Its Impact on Crypto Regulations
The sweeping electoral victory of the Republican Party in November has many industry executives optimistic about the future of digital asset regulations in the US. The upcoming resignation of Gensler from the SEC is also expected to bring about a more favorable regulatory environment for crypto companies.
In May, Congress passed the Financial Innovation and Technology for the 21st Century Act (FIT21), which included a comprehensive market structure bill outlining a regulatory framework for digital assets. However, the bill was halted in the Senate and never passed into law.
Brief Outline of FIT21 Market Structure Bill Provisions
The FIT21 legislation contained several key provisions related to digital asset regulations, including:
- Regulating digital assets under either the SEC or the Commodity Futures Trading Commission (CFTC), depending on the specific asset’s level of decentralization.
- Classifying most crypto projects as commodities if they meet certain criteria.
President-elect Donald Trump and Crypto Regulations
President-elect Donald Trump is reportedly considering handing the CFTC oversight over cryptos during his upcoming term. This would be a significant shift in regulatory authority, with many expecting it to bring about more favorable regulations for crypto companies.
Trump also nominated pro-crypto Paul Atkins to replace Gensler as SEC chair, citing Atkins’ role as co-chairman of the Digital Chamber’s Token Alliance as one of the reasons for the nomination.
Conclusion
The US crypto industry is at a critical juncture, with many executives optimistic about the future of digital asset regulations under the Republican Party. The approval of a market structure bill would help alleviate regulatory uncertainty and pave the way for innovation in the sector.
As the legislative session begins, it will be interesting to see how the Republican Party’s priorities play out, particularly with regards to crypto regulations.
Related Articles
- French Hill to Chair House Financial Services Committee in 2025: Representative French Hill has been appointed as the chair of the House Financial Services Committee for 2025. This is a significant development for the US crypto industry, as Hill has been a strong advocate for pro-crypto legislation.
- US Crypto Industry Optimistic about Regulatory Future: The Republican Party’s victory in November and the upcoming resignation of Gensler from the SEC have many industry executives optimistic about the future of digital asset regulations in the US.
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