U.S. House Financial Services Committee Chairman French Hill reaffirmed his efforts to push for permanent cryptocurrency legislation in the United States, stating that regulatory action is no substitute for legislation. With only 22 remaining legislative days in the Senate after the November election, he believes time is running out.
- Hill stated that the measures taken by the SEC and CFTC against cryptocurrencies cannot provide the enduring framework that Congress could establish.
- The Senate blocked debate on the CLARITY Act in September, with only 49 votes in support of the 60-vote motion.
- Hill still hopes lawmakers will pass the bill during the post-election lame-duck session.
- According to the attached report, the SEC and CFTC together still have seven vacant commissioner positions.
Fox Business relayed Hill’s comments during an interview on October 7. In the interview, the Arkansas Republican said that the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) have made progress on digital assets, but these efforts “still fall short” of a congressional solution.
As the Digital Asset Market Clarity Act stalls in the Senate, Hill urges lawmakers to use the remaining congressional calendar to secure permanent legislative change. His preferred window is the lame-duck session—the period after the November midterm elections but before the next set of lawmakers takes office in January, when Congress reconvenes.
We need permanent legal changes to ensure that the United States leads in digital assets and blockchain technology.
In the interview, Hill said he still hopes Congress will pass CLARITY during that session. He also noted the limited time available, pointing out that the Senate has only 22 scheduled session days between the election and the next Congress.
The CLARITY Act still requires Senate approval after a failed vote.
September reports citing Senate records showed that the Senate's frustration at the time centered on whether to initiate the CLARITY debate, not on whether the bill would ultimately pass. On September 15, the motion received 49 votes in favor, 50 against, and one senator absent, falling 11 votes short of the 60 needed.
According to a report by crypto.news on September 23, this failed procedural vote still leaves room for reconsideration, as Republican Senator Thom Tillis changed his vote from yes to no and filed a motion to reconsider the outcome.
According to the report, the House passed its version of H.R. 3633 in July 2025 by a vote of 294 to 134, with support from 78 Democrats. If the Senate version includes substantive changes, both chambers must still reach agreement before it is sent to the President.
Following the September vote, Democratic negotiators stated that ethical safeguards remain unresolved. Senator Angela Alsobrooks expressed her desire for the provisions to cover the current president, future presidents, and members of Congress, while still supporting digital asset legislation.
The Republican sponsors offered a different account, stating that their September 14 draft incorporated 126 substantive amendments proposed by Democrats. The changes mentioned in their statement relate to ethics provisions, state attorneys general enforcement authority, and the Treasury Department’s authority regarding deposit outflows tied to stablecoins.
The SEC and CFTC's crypto regulations remain constrained by existing authority.
Hill's October statement came shortly after SEC Chair Paul Atkins and CFTC Chair Michael Selig announced that their agencies would advance cryptocurrency regulation following instructions from U.S. President Donald Trump.
The CFTC's work predates the Senate's failed vote. Selig was quoted in an August 20 report on its cryptocurrency market rules plan, stating that the agency would proceed with its market structure efforts regardless of the bill's outcome.
According to the report, the CFTC already regulates derivatives, including crypto futures, options, and swaps, and can take action against fraud and manipulation in spot commodity trading. However, its current authority does not provide the same ongoing oversight of spot crypto exchanges as it does for registered derivatives platforms.
According to the proposed CLARITY framework described in the report, eligible digital commodities would generally be regulated by the CFTC, while activities related to securities would remain under the SEC’s jurisdiction. The bill would establish registration requirements for certain digital commodity exchanges and other participants.
For U.S. investors, August reports framed platform regulation as a practical distinction: the regulatory body overseeing a trading venue depends on the relevant products and activities. Proposed legislation would grant the CFTC greater authority over eligible spot digital commodity markets.
An analysis of restrictions on crypto regulations for institutions on September 24 documented several independent regulatory steps. The SEC’s interpretation issued on March 17 addressed five categories of assets, and a proposal in August outlined exemptions for crypto issuances of $5 million and $75 million, inviting public comment.
According to the analysis, the SEC also issued a conditional exemption for tokenized stock trading on September 17, while a CFTC crypto market initiative entered White House review at the preliminary rulemaking stage. The report distinguishes these actions from the statutory spot market framework envisioned by CLARITY.
The lame-duck session agreement depends on the dispute resolution clause.
Former Democratic Representative Tim Ryan made a similar assessment in a comment on September 24, stating that lawmakers could reach a legislative agreement during the lame-duck session if both sides return to negotiations and make concessions.
Ryan, a member of the Shyft Policy Board, noted that ethics, consumer protection, illicit finance, and stablecoin rewards remain unresolved issues. He stated that, despite disagreements over specific provisions of the bill, support for federal cryptocurrency regulation remains a bipartisan consensus.
Ryan believes that regulatory decisions must remain effective even after a change in government for U.S. companies that have invested capital and hired employees. He said that agency actions can assist businesses during congressional negotiations, but companies making long-term investments need a more durable framework.
According to September reports, Ryan also called for a consistent approach to digital assets, so that businesses and consumers do not have to resolve classification issues through individual lawsuits.
Hill’s schedule places these negotiations after an election that will determine which lawmakers return to Washington. In describing the Senate’s 22-day window, he noted that lawmakers entering the session will know whether they will remain in Congress or leave in January.
The SEC and CFTC combined have seven leadership vacancies.
The accompanying report also noted that, as of October 7, the leadership of both financial regulatory agencies was lean, with a total of seven committee positions vacant.
It was reported that Hester Peirce announced her resignation from the SEC last week, leaving Atkins and Commissioner Mark Uyeda as the only remaining members of the agency.
Regarding the CFTC, reports state that Selig serves simultaneously as chair and sole commissioner.