WASHINGTON — Rep. French Hill, R-Ark., the chairman of the House Financial Services Committee's panel on digital assets, said that he and leaders on the House Agriculture Committee will work together on setting up a regulatory framework for cryptocurrency.
The move for House Republicans is significant, because it signals that they intend to put crypto more under the purview of the Commodity Futures Trading Commission, which is overseen by agriculture lawmakers. That's a blow to Securities and Exchange Commission Chairman
Republicans have questioned whether having both the SEC and the CFTC oversee digital assets has created a confusing regulatory landscape for those in the crypto industry. They sought to make that point again at a hearing Thursday afternoon.
"The SEC and the CFTC have highlighted an impossible situation, where firms are being subject to enforcement actions from both agencies regarding the same digital asset," Hill said. "Absent legislation, our regulators are only pushing entrepreneurs, developers, and job creators offshore. We have a responsibility to protect our constituents. There are glaring gaps in consumer and investor protections, and regulation by enforcement does nothing to fill these gaps."
Gensler is a particular target of House Republicans this Congress, who have criticized the policymaker for his enforcement actions on the digital assets front, as well as a climate disclosure rulemaking.
The House Financial Services Committee will also hold a joint hearing with the House Agriculture Committee next month, Hill said.
"Two committees working hand-in-hand on a joint legislative product like this is unprecedented, and I believe it vastly increases our chances of getting it right," he said at the hearing.
