U.S. Representative French Hill, chair of the House Financial Services Committee, said in remarks reported by Crypto News that rulemaking from the Securities and Exchange Commission and the Commodity Futures Trading Commission falls short of what federal digital asset legislation would require.

Crypto News carried the comments this week. Hill, an Arkansas Republican, framed agency action as an interim measure rather than a durable market structure for crypto.

Which gaps does legislation fill?

A statutory framework would, in Hill's view, do what rulemaking cannot. The unresolved questions include how tokens are classified as securities or commodities, how digital asset trading platforms register with regulators, how custody requirements apply to assets outside securities law, and how the SEC-CFTC jurisdictional boundary is drawn for novel products. Agency guidance can address each question in isolation, but Congress writes the underlying rule.

Hill co-sponsored the Financial Innovation and Technology for the 21st Century Act, which the House passed in May 2024 with bipartisan support. The bill established a framework for digital asset classification, intermediary registration and disclosure, but stalled in the Senate. The legislative clock has continued to run, while agency rulemaking has proceeded in parallel.

What is the operational impact for markets?

For market participants, the gap between agency action and legislation translates into compliance uncertainty. Trading platforms, custodians, token issuers and brokers have reported that interpretive shifts at the SEC or CFTC can move cost structures and product design without notice. A statute would lock in the rule of decision and limit the room for reinterpretation across administrations.

Hill's position reflects a long-running argument among congressional Republicans: that the administration's preferred path of rulemaking under existing authority is legally narrower and politically reversible. Legislation, by contrast, requires bicameral passage and presidential signature, producing a more durable baseline.

What happens next?

The House Financial Services Committee is expected to continue moving market structure legislation in the current Congress. The Senate Banking and Agriculture Committees have held hearings on related proposals, though floor timing remains uncertain. Meanwhile, the SEC has pending rulemakings on crypto custody, exchange-traded products and transfer agent standards, and the CFTC has continued to develop its spot market framework.

Hill's intervention adds weight to a message Capitol Hill has delivered repeatedly: agency rulemaking is a stopgap, not a destination. The question for the industry is whether Congress can deliver a comprehensive bill before the next administration reshapes the regulatory lineup.