House Finance Chair: SEC, CFTC Crypto Rules Fall Short of CLARITY Act

Representative French Hill, chair of the House Financial Services Committee, said regulatory actions by the Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) have "fallen short" of the comprehensive framework outlined in the Digital Asset Market Clarity (CLARITY) Act. In a Wednesday Fox Business interview, the Arkansas lawmaker stressed that agency rulemaking cannot replace permanent legislation needed to position the United States as a global leader in digital assets and blockchain technology.

Hill's comments follow the US Senate's failure to pass the CLARITY Act last month, which would have established a clear market structure for cryptocurrencies by defining jurisdictional boundaries between the SEC and CFTC. Both agencies have since proposed rulemaking to address crypto oversight, but Hill argued these measures lack the long-term stability of congressional action. "I still have hope [...] that we can get [CLARITY] passed in the lame duck session of Congress," Hill said, referring to the brief window between the November midterms and January 2027.

The legislative urgency is amplified by significant staffing gaps at both regulators. The SEC currently has only Chair Paul Atkins and Commissioner Mark Uyeda following Hester Peirce's announced resignation last week, while the CFTC operates with Michael Selig serving as both chair and sole commissioner. Seven leadership vacancies across the two agencies underscore the challenges of advancing crypto policy through regulatory channels alone.

With only 22 scheduled session days remaining before the 119th Congress convenes, the political calculus around CLARITY is shifting. Lawmakers facing competitive reelection battles may weigh their votes differently depending on November outcomes, potentially complicating efforts to revive the bill. Meanwhile, SEC Chair Atkins and CFTC Chair Selig have signaled continued momentum on crypto rulemaking at the direction of President Donald Trump, even as Hill pushes for statutory solutions.