Key Developments In Crypto Policy As House Committee Chairs Are Nominated

According to Blockworks, the Republican Party is finalizing its selections for House committee and subcommittee chairs, with significant implications for the crypto industry. Representative French Hill has been nominated to chair the House Financial Services Committee, a position that could influence future crypto policy. Hill previously served as the first chair of the House Subcommittee on Digital Assets, Financial Technology, and Inclusion, which was established during the 116th Congress by Chair Maxine Waters. Under the leadership of Patrick McHenry, the subcommittee expanded its focus to include cryptocurrency matters, holding hearings on decentralized finance (DeFi), crypto market structure, and the role of federal agencies. Hill's nomination received bipartisan support, with Democrat Ritchie Torres expressing optimism for continued cooperation in the next session. Meanwhile, Glenn Thompson is expected to retain his role as chair of the Agriculture Committee, which plays a crucial role in commodities and derivatives markets. Thompson introduced the Digital Commodity Exchange Act in the previous session, a bill that influenced the Financial Innovation and Technology for the 21st Century Act (FIT21). This legislation, which passed through the Agriculture Committee and the full House with bipartisan support, aims to grant the Commodity Futures Trading Commission (CFTC) authority over crypto spot markets. Thompson emphasized that the bill was crafted with extensive feedback from stakeholders and market participants, aiming to close existing authority gaps and ensure U.S. leadership in financial and technological innovation. The nominations for committee chairs must be ratified by the House Republican Conference, which is expected to convene next week. In the Senate, there is uncertainty regarding the confirmation of SEC Commissioner Caroline Crenshaw, with Senate Banking Committee Chair Sherrod Brown attributing the delay to Republican senators prioritizing corporate interests. The upcoming week is anticipated to bring further developments in these areas.