CONGRESS

Incoming House Financial Services Chair French Hill (R-AR) in his Own Words

• Incoming House Financial Services Chair French Hill (R-AR) said of his top priorities in an interview with Politico, “I think, first, focus on the regulatory burden on community banks. Second, the misdirected oversight and the regulatory priorities of the SEC, and thirdly, see if we can find consensus in the House and Senate on how to craft a market structure for digital assets.” (PoliticoPro)

• When asked whether digital assets could be accomplished on reconciliation, Hill said, “I don’t know. Again, you’ve got to be very careful about the use of reconciliation when considering the parliamentary rules in the Senate.” (PoliticoPro)

• On working with Ranking Member Maxine Waters (D-CA), he said, “Maxine Waters has been a distinguished former chair and an outstanding voice for the Democrats on the House Financial Services Committee. I’d like to work with her on market structure for digital assets and rightsizing the regulatory burden on our community banks across the country and obviously try to find how we can work together in the area of affordable housing as well.” (PoliticoPro)

• On working with Waters on digital assets market structure, Hill said, “There’s been a lot of change, both in the outlook for who’s in charge of the House, the Senate and the executive branch since last June when we last took those votes on market structure. And I would hope that she could see that we have a very balanced, appropriate, fit-for-purpose regulatory idea that we would enjoy having her support.” (PoliticoPro)

• Hill told CNBC, “We need a market structure for digital assets. We don’t have rules of the road. That is the top priority for us. And our majority leader, Steve Scalise, has it on his first 100 days of the House, is to move a regulatory structure bill for digital assets — and, I also believe, a dollar-backed payment stablecoin for under U.S. law, as well.” (PoliticoPro)

• On a Bitcoin Strategic Reserve, Hill said, “I understand why some people are attracted to that,” Hill said. “I’d have to think long and hard about what the value of that is to the United States or the Treasury.” (PoliticoPro)

Reactions to Incoming House Financial Services Chair French Hill (R-AR)

• Financial Services Chair Patrick McHenry (R-NC) issued a statement in response to the selection of Rep. French Hill (R-AR) as the next House Financial Services Chair, “Congratulations to my longtime ally and current Committee Vice Chairman French Hill on being selected as the next Chairman of House Financial Services Committee. French’s experience in the private sector, the Treasury Department, and as Vice Chair have prepared him for this role. From stepping in on my behalf multiple times to lead Committee Republicans to spearheading the landmark FIT21, Congressman Hill has proven his capacity to lead this Committee. With French Hill at the helm, Republicans will build on our work from this Congress to finally enact a clear regulatory framework and robust consumer protections for the digital asset ecosystem. The quality of candidates in the race to lead this Committee underscores the embarrassment of riches we have on the Committee. I’m certain Congressmen Barr, Huizenga, and Lucas will continue to be valuable leaders for years to come. Chairman-designate Hill is the right person to guide this talented group of lawmakers, and I know the Committee is in good hands.” (Press release)

• Sen. Cynthia Lummis (R-WY) tweeted, “Congratulations to Rep. French Hill on being selected to chair Financial Cmte. This is a huge win for the digital asset community! Looking forward to working together to pass comprehensive digital asset legislation.”

• Rep. Young Kim (R-CA) tweeted, “Congratulations, Rep. French Hill! I look forward to working with you on FinancialCmte to cut regulatory costs, promote digital innovation, protect consumers, & preserve the American Dream for future generations.”

• Rep. Dan Meuser (R-PA) tweeted, “Congratulations to RepFrenchHill on becoming Chairman of the Financial Services Committee! His leadership this Congress on crypto policy and his deep expertise in financial services will serve the committee and the country well. This Chairman race was a testament to the quality of subcommittee chairs and committee members that I had the pleasure of serving with this Congress. Congratulations to RepAndyBarr, RepHuizenga, and RepFrankLucas on being excellent candidates, exemplifying the strength and talent within the committee. French will continue to build on the work of Chairman McHenry to make FinancialCmte the stellar committee that it is. PatrickMcHenry’s legacy is in good hands. I look forward to what we can achieve under French’s leadership as we work to make the American financial services industry the most competitive in the world.”

SEC Commissioner Caroline Crenshaw vote

• Sen. Bill Hagerty (R-TN) tweeted, “The American people spoke, yet Democrats aren’t listening. Today we blocked Biden and Senate Democrats from installing an anti-crypto, climate activist at the SEC for the next 5 years—during their last 5 weeks in office. This Administration has done enough damage.”

• Hagerty also tweeted, “Just now, Sherrod Brown tried to install Biden’s anti-crypto, climate-activist SEC nominee with an eleventh-hour backroom deal. A word of warning to my Democrat colleagues: I will have no sympathy for crocodile tears when we move our nominees through at lightning speed next year.”

• Senate Banking Chair Tim Scott (R-SC) tweeted, “At the last minute, Democrats postponed a vote on President Biden’s anti-crypto, climate activist nominees. These votes should be cancelled altogether – and this dysfunction and lack of transparency is just a last gasp of this failed, lame-duck administration.”

• Sen. Cynthia Lummis (R-WY) tweeted, “Sherrod Brown’s last act as Committee Chairman is to once again try to shank the crypto industry by reinstalling an anti-crypto, radical climate activist SEC commissioner in the final days of the Biden admin—the war on digital assets ends on January 20, 2025.”

Miscellaneous

• Sen. Bill Hagerty (R-TN) appeared on CNBC’s The Exchange and said, “As President Trump said, we want to be at the cutting edge of innovation here. If you look at the Biden Administration, at this SEC, you look at the regulatory onslaught that they’ve had to deal with—the fact that they’re using the lack of legal framework to just come in and regulate this industry by litigation. What we’re going to look for is a great opportunity for crypto to expand here, again, putting the United States at the cutting edge of the innovation. And I think we’re going to attract a lot of brain power here, and a lot of opportunity, as a result of it.” On his own approach to crypto, he said, “It’s taken some time, and my viewpoint has evolved. As you remember, Kelly, I was the U.S. Ambassador to Japan. I saw a massive heist take place there with Coincheck. I was deeply concerned about where that cryptocurrency might have landed. But as I dug into the technology and saw the potential of the blockchain, where this could go, it’s absolutely amazing. And then if I think about just basic principles of a decentralized currency like this, the freedom and liberty that it supports, there’s a lot of very positive aspects to this, and I think America should be at the forefront of it.” (Press release)

• Rep. Mike Carey (R-OH) tweeted, “The IRS has no business using the tax code to regulate digital currency. That’s why we sent a letter to Secy Yellen & IRS Commissioner Danny Werfel opposing the IRS’s expansion of their Broker Rule to self-custodial wallet providers.”

• Sen. Cynthia Lummis (R-WY) tweeted, “Scott Bessent will be a champion for digital assets and a crucial ally in passing my Strategic Bitcoin Reserve. I look forward to working closely with the future Treasury Secretary to restore fiscal responsibility!”

• Lummis also tweeted her appearance on Fox Business and said, “Operation Chokepoint 2.0 is warfare on the American people.”

• Lummis also tweeted, “I had the honor of speaking at CEI’s discussion on the weaponization of our financial systems. The Fed unfairly targets digital assets, and I look forward to restoring American trust in financial institutions under President Trump and his digital asset army.”

• Lummis also tweeted, “Honored to be named one of CoinDesk’s Most Influential People of 2024! Big things are coming for Bitcoin and digital assets in 2025!”

• Rep. Nathaniel Moran (R-TX) tweeted, “Join me on Tuesday, December 17th, at 7 PM CT for a tele-townhall focused on the issue of cryptocurrency and featuring special guest PerianneDC—the founder and CEO of The Digital Chamber! This is a unique opportunity for folks in the First District to learn more about cryptocurrency and the role it will play in the upcoming Trump Administration.”

What I’m Reading This Week

• Cryptocurrency Public Key Reporting: Using Embedded Technology to Aid Tax Compliance, Haozheng Jiang and Henry Ordower, Tax Notes