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Who?
Rep. French Hill (R-AR) — Chair, House Financial Services Digital Assets, Financial Technology & Inclusion Subcommittee
LISTEN: Laslo & Hill
Ask a Pol asked:
Do you think we’re gonna see movement on crypto / stablecoin in spite of the election this year?
Key Hill:
“I do. I do think that, look, the House Financial Service Committee has worked diligently since the summer of 2022 to draft a stablecoins bill and a regulatory framework for digital assets that is bipartisan,” Rep. French Hill exclusively told Ask a Pol. “Look, our existing regulatory system just does not account for this emerging technology and Web 3.0 finance. And so that’s why we call it fit-for-purpose. We’re not cutting slack. We are directing the SEC [Securities and Exchange Commission] and the CFTC [Commodity Futures Trading Commission] to do it.”
ICYMI — Chair Waters on the House crypto bill
Caught our ear:
“There’s recognition there’s a regulatory gap. I think the federal courts have indicated that, because where the SEC has attempted to use existing statutory and regulatory authorities, they’ve been told by the courts that they’re exceeding their authority or not doing it in the right way,” Hill said.
Below find a rough transcript of Ask a Pol’s exclusive interview with Rep. French Hill (R-AR), slightly edited for clarity.
TRANSCRIPT: Rep. French Hill
SCENE: Members of Congress are walking through a tunnel in the basement of the Capitol on their way to vote on the House floor.
Matt Laslo: “Hey, how are you, sir? Looking too nice for this place.”
Laslo quips to Rep. Hill who’s donning a bowtie.
Lawmaker 1: “Woah-woah-woah.”
Lawmaker 2: “That’s not very nice. This is your home.”
ML: “My bad. I’ve been here 18 years, so yes.”
Lawmaker 1: “I know. This is like home away from home.”
Matt Laslo: “I was curious — on crypto, stablecoin, do you think we’re gonna see movement? Is this gonna be one that we might get in spite of the campaign?”
French Hill: “I do. I do think that, look, the House Financial Service Committee has worked diligently since the summer of 2022 to draft a stablecoins bill and a regulatory framework for digital assets that is bipartisan and that can earn support from…”
They arrive at a bank of elevators, with one being held open by an attendant.
Attendant: “Mister Hill, would you like this one?”
FH: “Yeah. Sure, sure, thanks. Come on.”
Attendant: “You’re looking very dapper today.”
FH: “Thank you very much.”
ML: “He keeps getting compliments.”
Hill speaks to others on the elevator.
FH: “Um, sorry to hold you guys up.”
FH: “…with the goal that it be bipartisan and fill a real gap that we see in the whole regulatory system. Look, our existing regulatory system just does not account for this emerging technology and Web 3.0 finance. And so that’s why we call it fit-for-purpose. We’re not cutting slack. We are directing the SEC [Securities and Exchange Commission] and the CFTC [Commodity Futures Trading Commission] to do it. And this is something [Treasury Secretary] Janet Yellin’s testified in favor of. Chair [Rostin] Behnam has testified in favor of.”
Elevator drops the group off on the 2nd floor of the Capitol.
ML: “Yeah? I was sent over to you by Sen. Boozman (R-AR).”
FH: “So I can’t really speak to, you know.”
They walk through a crowded hallway just off the House floor.
FH: “Excuse me.”
ML: “Pardon me, ma’am.”
FH: “The senators are — there’s some senators that are equally engaged and working hard in this arena.”
ML: “Well it seems like — seems like they’re waiting for you all.”
FH: “But in my judgment, because the House has been working so consistently on this since, as I said, the summer of 2022, I think they’re waiting to see, y’know, what we can achieve on a bipartisan basis.”
ML: “And this is almost a non-partisan issue. It cuts across…”
FH: “It definitely cuts across.”
ML: “Yeah? Which is refreshing.”
FH: “It is. It’s an interesting — it is, it is. There’s recognition there’s a regulatory gap. I think the federal courts have indicated that, because where the SEC has attempted to use existing statutory and regulatory authorities, they’ve been told by the courts that they’re exceeding their authority or not doing it in the right way.”
ML: “Yeah?”
FH: “Yeah.”
ML: “What have you thought of [SEC Chair Gary] Gensler’s actions on it? Has he been helpful or…?”
FH: “The SEC’s provided technical assistance to both our thinking around the stablecoin bill and the regulatory framework bill. And, I think, that’s a constructive thing I can say. But, I think, in some of his enforcement approaches, that they’re probably not been constructive.”
ML: “That’s where they felt schizophrenic, almost like they agree with [Sen.] Elizabeth Warren (D-MA) and [Rep. Brad] Sherman (D-CA) on the one end, when it comes to regulatory actions, but then allowing some to go through. But, if you guys act…”
FH: “Generally, generally they, they — they generally wish that they could have used their existing authorities. However, they — if you back up, the SEC could have used exemptive relief from their rule-makings to accommodate a fit-for-purpose approach to digital assets. But I would say, as a general matter, they’ve chosen not to. And so that’s produced this litigation.”
ML: “Interesting. And, cherry on top, Congress needs to act because congressional action’s always better?”
FH: “President Biden’s executive order implies Congress should act, Secretary Yellen’s testified it should act and Chairman Behnam has said the same.”
ML: “Yep, there you go. ’Preciate ya.”
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EXCLUSIVE: Rep. French Hill says Congress will address "regulatory gap" on digital assets in spite of election