Hill criticized the stringent regulatory approach of former SEC Chair Gary Gensler for driving crypto firms abroad, emphasizing the necessity of clear, innovation-friendly US regulations to prevent market stagnation.
Summary
French Hill, the Republican chief of the House Financial Services Committee, has proposed a comprehensive strategy to reform US crypto regulation, arguing that new legislation will replace heavy-handed enforcement with transparent, investor-friendly guidelines. He cited former SEC Chair Gary Gensler’s stringent regulatory approach as driving crypto firms abroad and emphasized the need for clear, innovation-friendly regulations to prevent market stagnation. Hill also called for a collaborative process between the executive branch and Congress to propose new regulations, promoting accountability and trust.
Rep. French Hill, the Republican chief of the House Financial Services Committee, has proposed a comprehensive strategy to reform US crypto regulation. He argues that new legislation will supplant heavy-handed enforcement with transparent, investor-friendly guidelines.
He stated that the purpose of this regulatory reform is to encourage innovation in the digital asset sector and safeguard investors.
Hill addressed the necessity of regulatory clarity that dictates the responsibilities of both the SEC and the CFTC in a CNBC interview on Wednesday.
He clarified that the method will protect retail investors and motivate companies to adopt blockchain technology without concern for arbitrary enforcement.
Hill declared, “We are going to enact regulatory clarity,” indicating a resolute departure from the restrictive procedures of the past.
French Hill: Gensler’s Overly Forceful Strategies Pressured Crypto Firms Abroad
He identified former SEC Chair Gary Gensler as the source of this heavy-handed approach, which he claimed compelled companies to relocate their operations to the Middle East, the European Union, and London.
Additionally, Hill contended that this exodus serves as a stark reminder of the pressing necessity for regulations that are both plain and conducive to innovation. In his opinion, the primary reliance on enforcement has impeded market growth and impeded potential innovation.
Additionally, he underscored the necessity of a collaborative process between the executive branch and Congress. He emphasized that legislators from both chambers have already convened to deliberate on their priorities regarding digital assets, indicating that there is bipartisan support for reform.
“He insisted that we request that they utilize an open process through the federal register to propose new regulations, which Gary once again failed to do. He also emphasized that this transparency will promote accountability and trust.”
Lawmakers Form a New Digital Asset Policy
On Tuesday, Hill disclosed that legislators from both chambers would establish a working group to develop policies that facilitate the expansion of digital assets.
Republican leaders announced at a press conference on February 4 that a bicameral team that includes representatives from four critical committees would collaborate to advance legislation regarding a comprehensive crypto regulatory framework, which will encompass stablecoins.
Members of the House Financial Services Committee, House Agriculture Committee, Senate Banking Committee, and Senate Agriculture Committee would be actively involved in this collaborative endeavor.
Hill stated that the United States must not fall behind in the development of financial technology and digital assets.
Last month, President Donald Trump initiated immediate action by mandating the establishment of a cryptocurrency working group. This team will accomplish his pledge to reform US crypto policy by proposing new digital asset regulations and exploring the feasibility of establishing a national cryptocurrency stockpile.
Additionally, the president’s directive implores the preservation of finance services for crypto companies. This measure is a response to industry concerns that regulators have been pressuring lenders to sever ties with crypto businesses, a claim that regulators continue to dispute.
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