Drafting Rules for Digital Assets in 2025

Drafting rules for digital assets will be a top priority in 2025 for the newly-selected House Financial Services Committee Chair, French Hill, as Republicans seek to create a regulatory framework in the first 100 days.

Hill, who currently chairs the committee's digital asset-focused panel, was voted to lead the House Financial Services Committee on Thursday. He has worked on various crypto bills, including regulations for stablecoins and digital market structures, and has previously criticized U.S. Securities and Exchange Commission Chair Gary Gensler's approach to crypto.

> "We need a market structure for digital assets," Hill told CNBC on Friday morning. "We don't have rules of the road. Under Chairman Gensler, we had just regulation by enforcement. This is not helping America succeed or aiding technological advances and innovation for Web3 and blockchain in both publicly traded companies and financial services."

Hill noted that House Majority Leader Steve Scalise plans to move a regulatory structure bill for digital assets and is also focused on stablecoins as part of President-elect Donald Trump’s first 100 days. According to a letter obtained by Punchbowl News on November 6, Scalise aims to establish "a regulatory framework for digital assets to allow this industry to grow with certainty."

Many in the crypto industry support Hill's leadership of the House Financial Services Committee, expected to be central in shaping crypto legislation in the new year.

> "Congressman Hill has been a staunch advocate for sound digital assets policy, having led the Subcommittee on Digital Assets, Financial Technology, and Inclusion over the past two years," noted the DeFi Education Fund in an email statement. "We look forward to continuing our work with Chairman Hill to establish much-needed regulatory clarity while safeguarding the rights of software developers and DeFi users in the United States."

The Blockchain Association also highlighted Hill's experience in this area, with CEO Kristin Smith calling him a "leader and innovation champion."

Current House Financial Services Committee Chair Patrick McHenry (R-N.C.) announced his retirement in December 2023.

A Strategic Bitcoin Reserve?

The concept of a strategic bitcoin reserve has gained traction at both federal and state levels. Ahead of the November elections, Trump pledged to establish a strategic bitcoin reserve. Republican Senator Cynthia Lummis of Wyoming has introduced a draft bill directing the U.S. Treasury to purchase one million bitcoins over five years.

States are also drafting bills to create their own bitcoin reserves. For instance, Texas Republican Representative Giovanni Capriglione filed a bill establishing a reserve account through donations, intending to hold bitcoin for a maximum of five years.

When asked by CNBC about a potential bitcoin reserve, Hill expressed his curiosity:

> "I understand why some people are attracted to that," he said on Friday. "I'd have to think long and hard about what the value of that is to the United States or the Treasury."