Rep. French Hill secures chairmanship to lead the House Financial Services Committee: reports

Republicans voted to pick crypto-friendly French Hill as chair of the pivotal U.S. House Financial Services Committee, which is likely to be the starting line for digital asset bills in the new year.

Hill won the race to be chair on Thursday afternoon, according to multiple news reports. Names that were thrown to lead the committee include Reps. Andy Barr of Kentucky, Bill Huizenga of Michigan and Frank Lucas of Oklahoma — all friendly toward crypto.

Hill chairs the committee's digital asset-focused panel and has worked on passing crypto bills, including one to regulate stablecoins and another focused on market structure.

Accusations of debanking have also become a priority for Hill. During a hearing earlier this month, Hill voiced concerns about debanking in the crypto industry and said he plans to scrutinize the issue in the new year.

"Legal businesses in the United States, in this great country should have the freedom to bank and have financial services. We've seen this over and over again," Hill said during that hearing.

The current House Financial Services Committee Chair Patrick McHenry (R-N.C.) announced his retirement in December 2023. McHenry played a pivotal role in advancing crypto legislation, including one bill that would regulate stablecoins at the federal level and another that takes a comprehensive approach to crypto's market structure called FIT21. McHenry chaired his last hearing on Dec. 4.

The four contenders also voted for FIT21 as well as to overturn the U.S. Securities and Exchange Commission's staff accounting bulletin called SAB 121.

SAB 121 has drawn controversy over the past year over concerns in the crypto industry that it could prevent banks from safeguarding digital assets. It requires firms that custody crypto to record customer crypto holdings as liabilities on their balance sheets. The resolution to overturn the bulletin was ultimately vetoed by President Joe Biden.