Chair of House Financial Services Committee Becomes a Bitcoin Supporter

screen shot 2023 05 11 at

French Hill has been named the new Chair of the House Financial Services Committee in the United States. Hill is known for his work on several cryptocurrency-related legislative initiatives, reports The Block.

Outgoing committee chair Patrick McHenry will step down at the end of the year. McHenry played a pivotal role in advancing the Payment Stablecoins Act and the Financial Innovation and Technology for the 21st Century Act (FIT21).

Hill, who leads a group focused on digital assets, is closely associated with the development of these two bills.

Under his leadership, the committee will prioritize addressing accusations that banks are being discouraged from providing services to crypto firms.

All four contenders for the role supported FIT21 and the repeal of SAB 121. The latter effectively prevents regulated banking organizations from offering custody services for digital assets.

Background on SAB 121
On July 11, the House of Representatives failed to gather the two-thirds majority needed to override the president’s veto on the bill to repeal SAB 121.

Market Implications
Earlier, Sygnum analysts stated that the adoption of favorable regulatory frameworks by the U.S. Congress could set the tone for the altcoin market. The FIT21 and Payment Stablecoins Act were identified as pivotal legislative pieces shaping the future of the digital asset space.