Republicans Retain US House, Welcoming Crypto-Friendly Leaders

SUMMARY

Republicans are set to lead the House Financial Services Committee, overseeing the SEC and federal agencies.
The new committee chair is expected to be chosen this month or by December.

The U.S. House of Representatives remains in control of Republicans, which means that politicians who are sympathetic to cryptocurrencies will be in charge of efforts to enact laws pertaining to digital assets. Democrats held onto 208 seats, but Republicans gained a majority of 218 members, according to the Associated Press. This change puts Republicans in a position to supervise the powerful House Financial Services Committee, which keeps an eye on important organizations like the Federal Reserve and the U.S. Securities and Exchange Commission (SEC). There will be a vacancy in leadership when current chair Rep. Patrick McHenry, a Republican from North Carolina, retires in January 2025.

McHenry played a critical role in spearheading regulations for stablecoins and structuring legislation for the crypto market. This legislation proposed extending jurisdiction to the Commodity Futures Trading Commission (CFTC) over digital commodities while keeping the SEC in charge of digital assets related to investment contracts. With his upcoming departure, a new chair is expected to be selected as early as this month or by December. Potential successors include Reps. French Hill of Arkansas, Andy Barr of Kentucky, Bill Huizenga of Michigan, and Frank Lucas of Oklahoma, each known for supporting crypto initiatives. Notably, Hill leads the committee’s panel focused on digital assets and has actively worked on advancing crypto-related legislation, particularly involving stablecoins.

A Republican-led committee is anticipated to prioritize stablecoin regulation and crypto market structure. Ron Hammond, the Blockchain Association’s director of government relations, previously indicated that the committee’s agenda could later expand to include decentralized finance (DeFi) and non-fungible tokens (NFTs). Meanwhile, Maxine Waters of California, the current top Democrat on the committee, has also played a significant role in promoting stablecoin regulation. She expressed optimism about finalizing stablecoin legislation by 2024, fostering a bipartisan approach.

During a September congressional hearing, Waters emphasized the need for bipartisan collaboration on stablecoin regulation, pushing for progress before the year’s end. Addressing McHenry, she underscored her commitment to bipartisan solutions, urging him to act on her public calls for cooperation.

As Republicans take charge of the House Financial Services Committee, crypto policy could see more structured support. If selected, the new chair will shape upcoming legislative efforts, potentially focusing on regulatory clarity for stablecoins and broader market reforms to support digital asset growth.