Incoming committee chair Rep. French Hill plans to prioritize digital asset legislation in the new year

Drafting rules for digital assets will be a top priority in 2025 for the newly-selected House Financial Services Committee Chair French Hill as Republicans look to create a regulatory framework in the first 100 days. 

Hill, who current chairs that committee's digital asset-focused panel, was voted to lead the House Financial Services Committee on Thursday. Hill has worked on passing crypto bills, including one to regulate stablecoins and another focused on market structure. He has also been critical of U.S. Securities and Exchange Commission Chair Gary Gensler's approach to crypto in the past. 

"We need a market structure for digital assets," Hill told CNBC on Friday morning. "We don't have rules of the road. Under Chairman Gensler, we had just regulation by enforcement. This is not helping America succeed, not helpling technological advances, innovation for Web3, the use of blockchain, both in publicly traded companies and in financial services." 

Hill also noted that House Majority Leader Steve Scalise plans to "move a regulatory structure bill for digital assets" and is also focused on stablecoins as part of his first 100 days plan of President-elect Donald Trump’s term. According to a Nov. 6 letter obtained by Punchbowl News, Scalise said he would establish "a regulatory framework for digital assets to allow this industry to grow with certainty."

Some in the crypto industry showed support for Hill to lead the House Financial Services Committee, which is likely to be the starting line for crypto bills in the new year. 

"Congressman Hill has been a staunch advocate for sound digital assets policy, having led the Subcommittee on Digital Assets, Financial Technology, and Inclusion over the past two years," the DeFi Education Fund said in an emailed statement on Thursday. "We look forward to continuing our work with Chairman Hill to establish much-needed regulatory clarity while safeguarding the rights of software developers and DeFi users in the United States."

The Blockchain Association also pointed to Hill's time as chair of the digital assets subcommittee in a statement.

"Hill is a leader and innovation champion," said Blockchain Association CEO Kristin Smith in a statement on X on Thursday. 

The current House Financial Services Committee Chair Patrick McHenry (R-N.C.) announced his retirement in December 2023. 

A strategic bitcoin reserve?

The idea of creating a strategic bitcoin reserve has been circulating at both the federal and state level. Ahead of elections in November, Trump vowed to create a strategic bitcoin reserve. Republican Sen. Cynthia Lummis of Wyoming has a draft bill that would direct the U.S. Treasury to buy one million bitcoin over a period of five years.

States are also starting to introduce bills to create a strategic bitcoin reserve. Texas Republican Rep. Giovanni Capriglione said on Thursday that he filed a bill to create a reserve account through donations and will hold bitcoin for a maximum of five years. 

Hill was asked on CNBC about his thoughts on a bitcoin reserve. 

"I understand why some people are attracted to that," Hill said on Friday. "I'd have to think long and hard about what the value of that is to the United States or the Treasury."