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United States Representative French Hill, who represents Arkansas’s 2nd congressional district, informed Cryptonews that Republican SEC Commissioner Hester Peirce is likely to become the new acting chair of the US Securities and Exchange Commission (SEC).
The Arkansas Republican spoke exclusively with Cryptonews regarding this topic during the North American Blockchain Summit (NABS), an event taking place this week, organized by the Texas Blockchain Council in Dallas, Texas.
“We anticipate the Trump SEC Chairman,” Congressman Hill stated. “When Gary Gensler resigns on January 20 next year, the Republican will assume the role of acting chair of the SEC. That could be Hester Peirce – she is likely to be the acting chair of the SEC.”
Congressman French Hill with Cryptonews Reporter Rachel Wolfson at NABS 2024
Congressman Hill shared his insights shortly after the announcement of Gary Gensler’s impending resignation from his position as head of the SEC. Mr. Gensler confirmed this news on the social media platform X after the SEC announced that its 33rd chairman would step down on January 20 next year.
On January 20, 2025 I will be stepping down as @SECGov Chair.
A thread— Gary Gensler (@GaryGensler) November 21, 2024
Gensler Was A Disappointment For The Crypto Ecosystem
Congressman Hill elaborated, stating, “Gensler was a significant disappointment for the crypto ecosystem.”
He explained that this was due to Gensler’s approach of “regulation by enforcement.”
“Gensler was nearly incoherent regarding the crypto industry,” Congressman Hill remarked.
He further noted that the SEC would not be able to address all the challenges currently confronting the US crypto sector. He emphasized that Congress must collaborate with the SEC to enact laws that ensure equitable enforcement of digital assets in the future.
It is noteworthy that Congressman Hill considers Hester Peirce as a successor to Gary Gensler. Peirce, often referred to as “Crypto Mom,” is one of the most prominent advocates for crypto at the federal level in the United States.
Galaxy Digital CEO Mike Novogratz has also suggested that Peirce may take on the role of SEC Chair. He added that Robinhood’s legal chief, Dan Gallagher, could be another potential candidate following Trump’s return to office.
“Gary Gensler Couldn’t Leave Fast Enough”
US Congressman Tom Emmer, who serves as majority whip in the US House of Representatives, told Cryptonews at NABS that Gary Gensler “couldn’t leave fast enough.”
“Gary Gensler has been detrimental to the crypto industry,” Congressman Emmer stated.
The Minnesota Republican further noted that the SEC’s mission is to “ensure all Americans can engage in robust capital markets and financial systems.”
Grateful to participate in a fireside chat while at the @NABSummit. Tyler is right, BIG things are coming! https://t.co/fG12pa6cjI
— Tom Emmer (@GOPMajorityWhip) November 22, 2024
However, Congressman Emmer believes that Mr. Gensler has been obstructing this goal.
“Digital assets represent the fastest-growing segment of finance, and we should be the ones fostering innovation and growth, but Gensler has been ineffective,” Congressman Emmer remarked.
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Although Congressman Emmer did not specify who might succeed Mr. Gensler, he anticipates that Americans will see “someone in the SEC who is more supportive of digital assets.”
Congressman Emmer also mentioned that President-Elect Trump had plans to dismiss Mr. Gensler once in office.
“Gensler recognized that it was time to depart and didn’t prolong the process,” Congressman Emmer stated.
How US Crypto Policy May Advance
Congressman Hill and Congressman Emmer also articulated the legal frameworks concerning digital assets they hope to see established under the new Trump administration.
Congressman Hill believes that 2025 will be a pivotal year for advancing the digital asset agenda.
“I see this as a genuine opportunity for The House, The Senate, and The Trump Administration to collaborate,” he stated. “Drafting bipartisan legislation would pave the way for a US-dollar backed American stablecoin and market structure.”
He noted that such legislation would allow Web3 developers and innovators to create applications on blockchain networks without the concern of legal repercussions or being driven out of business.
Congressman Emmer remarked that the US still requires clear regulations for stablecoins. He pointed out that the various stablecoin legislative proposals thus far have not met his approval.
For instance, Congressman Emmer expressed his discontent with the recently introduced stablecoin legislation by US Representative Maxine Waters. He stated that Waters’ bill would permit states to implement a stablecoin policy but would still be under the jurisdiction of the Federal Reserve.
“That does not constitute a state-based system,” Congressman Emmer asserted. “I believe what makes the US unique is that we have different states that can experiment – one state might excel in a way that another can replicate or enhance. I don’t think stablecoins should be solely a ‘US’ issue.”
He added that a US stablecoin bill “doesn’t need to be overly complex,” emphasizing that the key factor will be reserve requirements for stablecoins and how the US ensures compliance with those requirements.
Bitcoin and Taxes Major Issue For Policy Makers
Congressmen Hill and Emmer also strongly oppose the taxation of Bitcoin (BTC) in the US.
Congressman Hill stated that he supports a consistent tax policy for Bitcoin that should not differ from other valuable assets.
Currently, the US Internal Revenue Service (IRS) classifies cryptocurrencies as property rather than currency. This classification results in cryptocurrencies being taxed similarly to stocks and ETFs.
This creates complications, however. Congressman Hill noted that Bitcoin’s volatility raises questions about whether the asset should be taxed as capital gains or treated as ordinary income.
“This is an area where we made errors in Congress last year, and it needs to be addressed in Trump’s Tax Cuts and Jobs Act,” Congressman Hill remarked.
In agreement, Congressman Emmer explained that the US needs to adopt a more “equitable” approach regarding Bitcoin and taxes.
“We must shield Bitcoin holders from an unexpected large tax liability. We have proposals to address this issue, but we require the crypto industry’s assistance,” he stated. “Large governments often fail to recognize that taxes influence human behavior – so we need to get this right.”
The post US Congressman French Hill Says Hester Peirce May Be New Acting Chair of The SEC appeared first on Cryptonews.
