Crypto Bills to Advance in 2024, Says US Lawmaker

The chairman of the House Financial Services Subcommittee on Digital Assets, Rep. French Hill, has expressed his optimism for the progress of crypto legislation in 2024. He said that he expects two key bills, one on stablecoins and one on crypto market structure, to pass in the House of Representatives in the upcoming year.

Stablecoin Bill to Provide Clarity and Oversight

One of the bills that Hill is hopeful about is the Clarity for Payment Stablecoins Act, which aims to provide a clear regulatory framework for stablecoins. Stablecoins are digital assets that are pegged to fiat currencies or other assets, and are widely used in the crypto industry for payments, trading, and lending.

The bill would require stablecoin issuers to obtain a bank charter and comply with banking regulations, such as capital requirements, consumer protection, and anti-money laundering rules. It would also give the Federal Reserve the authority to oversee and supervise stablecoin activities.

Hill said that he believes that a well-regulated payment stablecoin could benefit the US dollar and the global economy, as it would provide a fast, cheap, and transparent way of transferring value across borders. He also said that he is skeptical of the potential risks posed by unregulated or foreign-issued central bank digital currencies (CBDCs), which could undermine the dollar’s status as the world’s reserve currency.

“I think a payment stablecoin converting fiat U.S. dollars that is well regulated, well considered with a fine reputation, excellent transparency… will be the buyer of the margin of the short-term treasury bills, that’s good for the dollar,” Hill said at an event hosted by the Foundation for Defense of Democracies on Jan. 29.

Crypto Market Structure Bill to Foster Innovation and Competition

The other bill that Hill is optimistic about is the Financial Innovation and Technology for the 21st Century Act, which aims to create a comprehensive and consistent system of rules for the crypto market. The bill would establish a new office within the Treasury Department, called the Office of Financial Innovation and Technology, to coordinate and oversee the regulation of crypto activities among different federal agencies.

The bill would also create a new category of regulated entities, called digital asset depositories, to provide custody, exchange, and lending services for crypto assets. The bill would also clarify the jurisdiction and roles of the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) in regulating crypto securities and derivatives, respectively.

Hill said that he thinks that the bill would foster innovation and competition in the crypto space, as it would provide legal certainty and a level playing field for crypto businesses and investors. He also said that he is open to hearing the views of the top Democrats on the committee, such as Chairwoman Maxine Waters and Rep. Brad Sherman, who have expressed concerns about the illicit use of crypto for money laundering, terrorism financing, and tax evasion.

“I still am optimistic that you’ll see those bills come to fruition during 2024,” Hill said. “I’ve been very pleased with every meeting I’ve been in, both bipartisan as well as in the administration on those.”

Crypto Legislation Faces Challenges and Opportunities in 2024

The crypto legislation in the US faces several challenges and opportunities in 2024, as the political landscape and the public sentiment may change. Hill acknowledged that the timing of the bills is uncertain, as the Congress has many other issues on its agenda, such as the infrastructure bill, the debt ceiling, and the midterm elections.

However, he also noted that there is a growing awareness and interest in crypto among lawmakers and regulators, as well as the general public. He said that he hopes that the US can maintain its leadership and competitiveness in the crypto industry, by providing the right regulatory environment and an open capital market.

“But there’s a timing issue, and you know, timing is everything in politics,” Hill said. “But when you have so many things on our plate, we’re all navigating that.”