US Regulators’ Crypto Efforts Fall Short of Permanent Congressional Legislation, Says House Financial Services Chair French Hill

Representative French Hill, who serves as the chairman of the House Financial Services Committee, has emphasized that while United States financial regulators are actively moving forward with initiatives to address digital assets, their administrative actions ultimately lack the long-term stability and permanence that can only be provided by formal legislation enacted by Congress.

Speaking during a Fox Business interview, the Arkansas lawmaker detailed how the US Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) have taken recent steps to address various aspects of cryptocurrency regulations. These regulatory maneuvers follow the decision by the US Senate last month to halt the advancement of the Digital Asset Market Clarity (CLARITY) Act, a legislative package intended to establish a comprehensive federal framework for the digital asset ecosystem.

Both financial agencies have since proposed targeted rulemaking to handle different aspects of overseeing and enforcing crypto regulations within their respective jurisdictions. However, Hill asserted that this regulatory response in the aftermath of the failed CLARITY vote "falls short" of the holistic and permanent legislative solutions required by the rapidly evolving blockchain and digital asset sector.

"I still have hope […] that we can get [CLARITY] passed in the lame duck session of Congress," Hill said during the interview. "We need that permanent law change to make sure America is number one in digital assets and blockchain technology."

The Arkansas lawmaker’s critical assessment of administrative rulemaking comes at a pivotal moment for US financial policy. His comments followed formal announcements from the heads of the SEC and the CFTC—Paul Atkins and Michael Selig, respectively—outlining their respective agency plans to push forward with crypto regulation under the broader policy direction of US President Donald Trump.

As Hill noted, the legislative window for achieving a breakthrough in the Senate remains exceptionally narrow. Following the US midterm elections in November, the Senate will have only 22 days in official session before the next group of lawmakers is sworn in and enters Congress in 2027. During this critical lame duck session, the ultimate outcome of the elections is expected to play a substantial role in influencing legislative votes either in favor of or in opposition to the CLARITY Act. Lawmakers participating in the lame duck session will be acutely aware of their political futures—specifically whether they will be returning to Capitol Hill for the new congressional term or departing permanently in January. This unique political dynamic could either mobilize bipartisan support to finalize a long-sought regulatory framework or cement the gridlock that has stalled previous legislative efforts.

Empty commissioner seats at both regulators

Complicating the regulatory landscape further, both the SEC and the CFTC are currently operating with significant vacancies at their highest leadership levels. As of Wednesday, there are a total of seven leadership and commissioner vacancies across both agencies combined, leaving their internal policymaking structures unusually thin.

The SEC specifically has faced recent high-profile departures, including the announcement last week by Commissioner Hester Peirce that she would be resigning from her post. With Peirce’s departure, the agency’s leadership commission is left with only Chair Paul Atkins and Commissioner Mark Uyeda, creating a truncated quorum to handle complex enforcement actions, policy determinations, and new rulemaking initiatives. Meanwhile, the CFTC faces a similarly sparse leadership structure, with Michael Selig serving concurrently as the agency’s chairman and as its sole active commissioner.

This lean operating environment at both the SEC and the CFTC underscores the structural limitations highlighted by congressional leaders like Hill. While agency heads can direct staff to propose frameworks and enforcement strategies under executive guidance, the absence of a full complement of confirmed commissioners—coupled with the lack of statutory backing from a permanent act of Congress—leaves the nation’s digital asset policy vulnerable to shifting political winds and future judicial challenges. As lawmakers and agency officials navigate the compressed timeline of the upcoming lame duck session, the broader financial sector continues to monitor the tension between administrative oversight and the enduring push for a statutory foundation for blockchain technology in the United States.