cryptopolitan.com
Rep. French Hill will lead the House Financial Services Committee and investigate debanking claims in the crypto sector. He aims to ensure crypto businesses have equal access to banking services. Hill also hopes to advance stablecoin regulation before 2024 ends.
Rep. French Hill, an Arkansas Congressman, is set to become the next House Financial Services Committee Chairman following the retirement of current Chair Patrick McHenry.
Hill, who has made a name for himself has already, outlined plans to investigate the controversial issue of debanking in the crypto sector.
Rep. French Hill to lead investigation on crypto debanking claims
In a recent post, Rep. Hill announced that one of his top priorities in the upcoming Congress will be thoroughly reviewing and scrutinizing the claims of crypto businesses being unfairly cut off from banking services.
This issue has gotten attention in recent months, with many industry leaders, including venture capitalist Marc Andreessen, speaking out about federal authorities allegedly pressuring banks to close accounts linked to the cryptocurrency industry.
Critics say these actions are similar to the Department of Justice’s “Operation Choke Point” from 2013, which tried to block banking services for industries seen as high-risk.
Marc Andreessen, co-founder of a16z, highlighted these concerns recently on Joe Rogan’s podcast. He claimed that the U.S. government had pressured banks to close accounts associated with crypto and other industries, sparking widespread debate.
During a House Financial Services Committee hearing on Dec. 3, Rep. Hill strongly opposed these actions. He stated, “Legal businesses in this country must have access to banking and financial services,” stressing that the government should not prevent businesses from operating freely within the financial system.
Equal banking access for crypto firms
Hill’s comments indicate that, under his leadership, the committee will take a strong stance on ensuring crypto businesses have equal access to banking services.
Testimonies from crypto industry leaders, such as Denelle Dixon, CEO of Stellar Development Foundation, and Nathan McCauley, CEO of Anchorage Digital, revealed how their companies had struggled to maintain banking relationships.
Dixon also explained that her company had been forced to approach ten different banks after facing rejections, with no explanation provided for the denials. This was accepted by other crypto executives who have experienced similar difficulties.
Rep. Hill’s comments come at an important moment. He is to lead the committee in 2025, following Patrick McHenry’s retirement. The committee’s leadership change could give a shift in how Congress approaches crypto regulation and banking access.
Hill, along with other pro-crypto Republicans such as Andy Barr, Bill Huizenga, and Frank Lucas, may play a pivotal role in shaping the future of crypto legislation.
The issues around debanking are part of larger talks about regulating crypto, including stablecoins. Hill is hopeful that despite challenges, progress on crypto laws, including a stablecoin bill, will happen before the end of 2024.
Rep. Maxine Waters, the leading Democrat on the House Financial Services Committee, also backed progress on crypto laws. She recognized the challenges but noted that bipartisan work on stablecoin regulation was advancing.
Waters said, “I’ve always appreciated Mr. McHenry’s efforts to find common ground. Hopefully, we can see meaningful progress before the new Congress begins.”
As the crypto industry faces increasing scrutiny and regulatory challenges, Rep. Hill’s leadership could prove crucial in ensuring the sector’s continued access to banking services.