- Key takeaway: House Financial Services Committee Chair French Hill, R-Ark., said in an appearance at the U.S. Chamber of Commerce that a crypto market structure bill is an important priority, and one he is optimistic will be completed.
- Expert quote: "I think this can be done, I think we can land that plane in the Senate. We just want to be as supportive as we can on the text, and be emotional-support animals for their effort." — House Financial Services Committee Chair French Hill
- What's at stake: The banking industry and crypto exchanges have been deadlocked for months over the ability of nonbank stablecoin issuers to offer yield-like rewards on stablecoin holdings, a prospect that banks say could drain deposits from the banking system.
WASHINGTON — House Financial Services Committee Chair French Hill, R-Ark., struck an optimistic note about the prospects of a crypto market structure bill being passed by the Senate and signed by President Donald Trump, saying some aspects of the bill may have to be left to regulators to iron out.
Speaking at the U.S. Chamber of Commerce headquarters across from the White House Tuesday morning, Hill said the importance of the crypto market structure bill is undiminished, despite some rumblings in the crypto community that the industry could thrive with exemptive relief within the existing legal framework.
"There's no question in my mind that we need a market structure bill enacted and signed into law by President Trump, because there are some who are on the fringes of decentralized finance or blockchain technology who think, 'Well, we can just craft new blockchain-oriented financial services system through exemptive relief, through existing federal statute and regulatory agencies," Hill said. "I find that a fiction — I don't believe that to be the case. I think you need bright-line statutory language to do that."
Hill noted that the Senate Banking Committee, chaired by Sen. Tim Scott, R-S.C., and the Senate Agriculture Committee, chaired by Sen. John Boozman, R-Ark., are currently in the process of reconciling two versions of the legislation, marked up by their respective committees.
The Senate Banking Committee
"I think this can be done, I think we can land that plane in the Senate," Hill said. "I'm grateful to all of the senators on both sides of the aisle who remain committed, that market structure is very important to get done. And we just want to be as supportive as we can on the text, and be emotional-support animals for their effort."
Regarding a compromise between the banking and crypto industries on stablecoin yield, Hill said the language is already in "the zone of acceptability," and that both sides will simply "have to come to terms with trying to get the best that they can."
Hill added that the regulatory treatment of stablecoin sales practices and corresponding rules could address some of the concerns, rather than ensuring that the issues be resolved at the legislative level.
"I've been very consistent to say, the rulemaking connected to [the GENIUS stablecoin bill], which is working its way through Treasury in its final form … that's where sales practices could be refereed," Hill said. "Sales practices can be dealt with in a more one-off way under the GENIUS regulatory umbrella for bank and nonbank issuers of the stablecoin.
"Our view in the House was, 'They don't pay interest, and we want bank and nonbank issuers to be treated the same,' and I'm not going to budge from that philosophical view," Hill continued. "And what can't be perfectly dealt with in the statute could perhaps be dealt with in Treasury's rulemaking."
