Rep. French Hill: SEC and CFTC Rules Cannot Replace Permanent Crypto Law
House Financial Services Committee Chair Rep. French Hill said Tuesday that SEC and CFTC regulatory actions, while welcome, do not substitute for permanent legislation. Hill renewed his push for the CLARITY Act as the Senate enters a compressed post-election calendar with just 22 remaining session days.
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Hill Credits Agencies but Demands Legislative Fix
Rep. French Hill acknowledged that the SEC and CFTC "stepped in" with new rules after the CLARITY Act stalled, but said regulatory action alone falls short. Hill, chair of the House Financial Services Committee, told Fox Business on Tuesday that "only a permanent law change" can secure U.S. leadership in crypto markets and establish durable compliance standards.
Hill did not specify which recent SEC or CFTC actions he was referencing, but the comment reflects ongoing tension between the executive branch's incremental rulemaking and Congress's appetite for a comprehensive statutory framework.
Urgency Against a Narrowing Window
The timeline for legislative action has tightened sharply. The Senate has 22 session days remaining after November's elections before year-end, according to Hill's statement. The compressed calendar makes passage of any comprehensive crypto bill unlikely in the lame-duck session, pushing substantive legislative efforts into 2025.
Hill's emphasis on permanence signals concern that agency rules could be reversed or reinterpreted by future administrations, creating the market instability and fragmented compliance standards that proponents of the CLARITY Act say plague the current regime. Without settled law, exchanges, custody providers, and DeFi protocols continue to operate under diverging regulatory interpretations.
Why It Matters
For Traders
Ongoing regulatory uncertainty means compliance burden and listing rules may shift, affecting which tokens trade on which U.S. venues in the near term.
For Investors
Absence of permanent legislation keeps regulatory risk premium elevated; a comprehensive law would likely reduce compliance costs and increase institutional participation over 12-24 months.
For Builders
Protocol teams and infrastructure providers must continue hedging against multiple regulatory scenarios until Congress passes settled legislation, delaying certainty-dependent product launches.
This article is for information only and is not financial advice. Read the full disclaimer.
