Rep. French Hill (R-Ark.) has been chosen to chair the Financial Services Committee, placing a pro-crypto voice in a key legislative role.
The influential Financial Services Committee will be led by Rep. French Hill (R-Ark.), who has been designated by House Republicans. This appointment places a vocal crypto advocate at the head of Wall Street’s congressional oversight body.
In addition, this places Hill in a position that would be a critical starting point for the legislative efforts to regulate the crypto industry that will commence next year.
According to an initial report from The Hill, Hill won the chairmanship on Thursday after a second-round vote, defeating three other crypto-friendly candidates, including Rep. Andy Barr of Kentucky, according to two sources familiar with the closed-door selection.
The Arkansas Republican is the current chair of the digital asset subcommittee of the committee and has advocated for the passage of numerous crypto bills, such as legislation to regulate stablecoins and reform the market structure.
“Legal businesses in this great country should have the freedom to bank and have financial services,” Hill said during a December 4 hearing, highlighting his focus on crypto firms’ banking access concerns.
The Financial Committee’s jurisdiction encompasses the Federal Reserve, Wall Street regulations, and, increasingly, crypto oversight—a sector that is receiving increased attention from U.S. regulators.
The committee, which is chaired by Hill, will also examine what critics refer to as “Operation Chokepoint 2.0,” which refers to purported regulatory initiatives that are intended to limit the access of crypto companies to banking services.
The resolution was ultimately vetoed by President Biden, despite the fact that the Republican has also joined efforts to overturn SEC guidance requiring banks to register customer crypto holdings as balance sheet liabilities.
Hill succeeds the retiring Chair Patrick McHenry (R-N.C.), who was instrumental in the advancement of crypto legislation, including the comprehensive Financial Innovation and Technology for the 21st Century Act (FIT21).
His entrance into Congress comes in the wake of President-elect Donald Trump’s appointments of David Sacks as AI and Crypto Czar and Paul Atkins as the new Chairman of the Securities and Exchange Commission.
Hill stated in October that the outgoing SEC Chair, Gary Gensler, should resign due to allegations of “fear-mongering” within the federal agency.
Barr’s intimate relationship with Majority Leader Steve Scalise, as per the report, caused some House members to be taken aback by his appointment on Thursday.
Hill’s prior affiliation with former Speaker Kevin McCarthy was perceived as a potential impediment.
The Republican also contributes technical expertise to the position, having co-authored numerous crypto legislation and established relationships with members of the opposing party. This collaborative approach could be instrumental in the passage of legislation in Congress next year.
Hill is anticipated to assume the chairmanship upon the commencement of the new congressional session on January 3.