Clarksville Times

Congressman French Hill, Chairman of the Subcommittee on Digital Assets, Financial Technology and Inclusion, testified before the House Committee on Rules in support of H.R. 4763, the Financial Innovation and Technology for the 21st Century Act (FIT21), and H.R. 5403, the CBDC Anti-Surveillance State Act.

Hill emphasized that FIT21 aims to provide regulatory clarity and consumer protections for digital assets. "Absent clear rules, we will continue to see the SEC pursue a ‘regulation by enforcement’ agenda," he stated. He noted that this bill is a product of bipartisan discussions and incorporates feedback from various agencies, including the Securities Exchange Commission.

The bill was co-authored with Agriculture Chair Thompson and colleagues Warren Davidson and Tom Emmer following FTX's collapse in 2022. Hill argued that without clear regulations, market participants fear litigation if they continue operations in the U.S., which ultimately harms constituents.

"FIT21 alleviates this concern by leveraging existing capabilities at the Securities Exchange Commission and the Commodity Futures Trading Commission," Hill said. The bill imposes strict consumer protections, mitigates conflicts of interest, requires capital standards for intermediaries, and enforces higher custody standards.

Hill also addressed concerns about deregulation: "This bill does not create securities loopholes or deregulate crypto." Instead, it seeks to provide similar protections as those in traditional financial markets through a tailored disclosure regime overseen by either the SEC or CFTC.

Turning to H.R. 5403, Hill explained its purpose to prohibit the Federal Reserve from issuing a Central Bank Digital Currency (CBDC) unless it meets specific criteria ensuring privacy akin to cash. He stressed that any authorization must come directly from Congress due to constitutional provisions.

"The only ‘benefit’ that a CBDC has is increased surveillance and control over Americans’ financial lives," Hill argued, emphasizing that such control contradicts Americans' right to privacy.

Hill concluded his testimony by thanking the committee for their time and expressing his anticipation for further discussion on these legislative efforts.