House Financial Services Committee Chairman Rep. French Hill (R-Ark.) on Wednesday said regulators are making progress on cryptocurrency oversight, but permanent legislation remains essential as he holds out hope for the Clarity Act's passage before year-end.
Why Crypto Regulation Needs Congress
Hill told FOX Business the SEC and CFTC are using their existing authority to establish clearer rules for digital assets following the Clarity Act's setback in the Senate.
He acknowledged efforts by SEC Chairman Paul Atkins and CFTC Chairman Michael Selig to define digital assets and digital commodities through regulatory actions and exemptions.
However, he argued that agency-level measures cannot replace legislation establishing a lasting regulatory framework.
"These regulatory policies fall short of what we have to do, which is have a legislative solution," Hill said.
As the November midterm elections are approaching, he expressed that he still has hope that the Act can be passed in the "lame duck session of Congress."
"We need that permanent law change to make sure America is number one in digital assets and blockchain technology."
Why Sen. Lummis Is Criticizing Democrats
Senator Cynthia Lummis (R-Wyo.) on Wednesday criticized Democrats for voting against the CLARITY Act despite getting a consumer protection they had demanded.
The provision requires crypto exchanges to prove whether they can access and move customers' funds using private keys.
Lummis said the safeguard, absent from the House version, was included at Democrats' request to strengthen consumer protections.