New US Financial Services chair French Hill targets crypto regulation in first 100 days

French Hill, Arkansas Republican and the new chairman of the House Financial Services Committee has his eyes locked on crypto.

Hill, who took the reins on December 13, laid out a clear agenda on CNBC’s Squawk Box. Hill’s top priority? To fix the regulatory chaos that’s been crippling the crypto industry while pushing innovation and making U.S. financial markets more competitive.

He has come into this role amid huge political changes, including the Republican Party’s sweeping victories in November. These changes, along with SEC Chair Gary Gensler’s upcoming resignation, have triggered a full-on bull run.

Crypto regulation, stablecoins, and FIT21

Hill wants to end the SEC’s “regulation by enforcement” approach, he said. “We need a market structure for digital assets… This is not helping America succeed.”

At the heart of Hill’s strategy is the Financial Innovation and Technology for the 21st Century Act, or FIT21. This comprehensive bill proposes a regulatory framework for crypto, dividing oversight between the SEC and the Commodity Futures Trading Commission (CFTC) based on a project’s level of decentralization. 

Despite passing in the House earlier this year, the bill stalled in the Senate. Hill is determined to push it forward, with House Majority Leader Steve Scalise promising to prioritize the legislation within the first 100 days of the new congressional session.

Stablecoins are another pillar of Hill’s agenda. He’s advocating for a U.S.-backed stablecoin as part of broader efforts to modernize payment systems and keep America competitive.

“Our Majority Leader Steve Scalise has it on his first 100 days of the House to move a regulatory structure bill for digital assets,” Hill said.

A strategic Bitcoin reserve?

One of the most intriguing topics Hill addressed is the idea of a national Bitcoin reserve. This concept has gained traction among Republicans, with President-elect Donald Trump pledging to establish such a reserve during his campaign.

Wyoming Senator Cynthia Lummis, a prominent crypto lover, has already drafted a bill that would require the U.S. Treasury to acquire one million Bitcoin over five years. Texas Representative Giovanni Capriglione is pursuing a similar plan at the state level, proposing a Bitcoin reserve funded through donations.

When asked about the federal government adopting a Bitcoin reserve, Hill expressed caution. “I’d have to think long and hard about what value that is to the United States or the Treasury,” he said during the interview.

His response suggests a more measured approach compared to the outright enthusiasm shown by some of his Republican colleagues.

Trump is considering handing the CFTC oversight of digital assets, a move that would classify most crypto projects as commodities if they meet certain criteria. Trump has also nominated Paul Atkins, a known crypto advocate, to replace Gensler as SEC chair.

Atkins’ past work as co-chair of the Digital Chamber’s Token Alliance is seen as a promising sign for the industry, which has long been calling for leadership that understands the nuances of blockchain technology.

Banking reforms and capital markets

Hill isn’t just focused on crypto. His agenda includes reforms aimed at easing the regulatory burden on smaller banks and improving capital formation for public companies. He criticized the current banking regulations for driving consolidation toward the largest financial institutions.

“The regulatory burden actually pushes consolidation in the banking industry to the largest bank because nobody can cope with the regulatory burden,” Hill said.

His focus on capital markets is just as sharp. Hill wants to remove what he calls “barnacles on the ship of state,” referring to outdated rules that make it harder for companies to go public.

He’s pushing for a streamlined regulatory environment that encourages innovation while maintaining strong consumer protections. These reforms, Hill argues, will make U.S. markets more attractive and competitive on a global scale.

Hill also emphasized the need for stronger partnerships between banks and fintech companies. He believes fintech can play a critical role in improving compliance and customer service, two areas where traditional banking often falls short.

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