Rep. Hill calls on Congress to get its 'act together' on crypto regulation

Quick Take

  • Rep. French Hill, chair of a newly formed digital asset-focused House Financial Services subcommittee, warned that businesses will go elsewhere while agencies crack down on crypto. 
  • Hill, an Arkansas Republican, said the first step is to pick up stablecoin legislation, continuing from last year’s efforts. 

Congress needs to get its “act together” to regulate cryptocurrencies, said Rep. French Hill, chair of a newly formed digital asset-focused House Financial Services subcommittee.  

“We all have a front row seat to what happens in Congress if we don’t get our act together,” Hill, R-Ark., said in pre-recorded remarks on Tuesday at the DC Blockchain Summit. “Businesses will leave the U.S. to go elsewhere while the agencies are taking major steps to crack down on the crypto blockchain digital asset industry.” 

Hill said Congress should first pursue legislation instead of being “replaced by enforcement actions or regulatory guidance from the regulatory agencies.” Though he didn’t name names, the Commodity Futures Trading Commission and particularly the Securities and Exchange Commission have been busy this year bringing enforcement actions against crypto firms and individuals.  

The SEC brought a record number of crypto related enforcement actions in 2022, and it doesn’t seem to be slowing down this year. The SEC moved against crypto exchange Kraken over its staking services and also brought charges against Terraform Labs and its CEO Do Kwon last month. Decentralized company Sushi was also recently reported it was hit with a subpoena from the SEC.

First steps

Congress is at a crossroads, and the first step is to pick up on stablecoin legislation, Hill said.