French Hill says SEC and CFTC crypto rules fall short of legislation

House Financial Services Committee Chair French Hill has renewed his push for a permanent US crypto law, saying regulatory action falls short of legislation as the Senate faces just 22 session days after November’s elections.

Fox Business carried Hill’s comments in an Oct. 7 interview, during which the Arkansas Republican said the Securities and Exchange Commission and Commodity Futures Trading Commission had made progress on digital assets but their efforts “fell short” of a congressional solution.

With the Digital Asset Market Clarity Act stalled in the Senate, Hill called for lawmakers to use the remaining congressional calendar to secure a permanent change in law. His preferred window is the lame duck session, when Congress returns after the November midterm elections and before the next group of lawmakers takes office in January.

“We need that permanent law change to make sure America is number one in digital assets and blockchain technology.”

In the interview, Hill said he still hoped Congress could pass CLARITY during that session. He also pointed to the limited time available, noting that the Senate has only 22 scheduled session days between the elections and the arrival of the next Congress.

CLARITY Act still needs Senate agreement after the failed vote

Senate records cited in September coverage show that the chamber’s setback concerned opening debate on CLARITY, rather than a final vote on whether to pass the legislation. On Sep. 15, the motion received 49 votes in favor and 50 against, with one senator absent, leaving supporters 11 votes short of the required 60.

As crypto.news reported on Sep. 23, the failed Senate procedural vote left a route for reconsideration because Republican Sen. Thom Tillis switched his vote to no and filed a motion to revisit the result.

According to that report, the House had passed its version of H.R. 3633 in July 2025 by 294–134, including support from 78 Democrats. A Senate version containing material changes would still require agreement between the two chambers before reaching the president.

In statements following the September vote, Democratic negotiators said ethics safeguards remained unresolved. Sen. Angela Alsobrooks said she wanted restrictions covering the current president, future presidents and members of Congress, while maintaining her support for digital asset legislation.

Republican sponsors gave a different account of the negotiations, saying their Sep. 14 draft incorporated 126 substantive changes sought by Democrats. Their statement cited changes involving ethics provisions, state attorney general enforcement and Treasury authority concerning stablecoin-related deposit flight.

SEC and CFTC crypto rules remain tied to existing powers

Hill’s October remarks followed announcements by SEC Chair Paul Atkins and CFTC Chair Michael Selig that their agencies would proceed with crypto regulation at President Donald Trump’s direction.

The CFTC’s work predates the failed Senate vote. In an Aug. 20 report on its crypto market rule plans, Selig was quoted as saying the agency would pursue market structure regardless of the bill’s outcome.

According to that coverage, the CFTC already supervises derivatives, including crypto futures, options and swaps, and can pursue fraud and manipulation in spot commodity transactions. Its existing powers do not provide the same routine supervision of spot crypto exchanges that applies to registered derivatives platforms.

Under the proposed CLARITY framework described in the report, qualifying digital commodities would generally fall under CFTC oversight, while securities-related activity would remain with the SEC. The bill would establish registration requirements for certain digital commodity exchanges and other participants.

For American investors, the August report identified platform supervision as a practical distinction: the regulator responsible for a trading venue depends on the products and activities involved. The proposed legislation would give the CFTC additional authority over qualifying spot digital commodity markets.

A Sep. 24 examination of agency crypto rulemaking limits documented several separate regulatory steps. The SEC’s March 17 interpretation described five asset categories, while an August proposal outlined crypto offering exemptions of $5 million and $75 million, subject to public comment.

According to that examination, the SEC also issued a conditional tokenized-stock trading exemption on Sep. 17, and a CFTC crypto markets measure entered White House review that day at the preliminary rulemaking stage. The report distinguished those actions from the statutory spot-market framework contemplated by CLARITY.

A lame duck agreement depends on resolving disputed provisions

Former Democratic congressman Tim Ryan offered a similar assessment of the remaining legislative window in comments published on Sep. 24, saying lawmakers could reach a lame duck legislative agreement if both sides returned to negotiations and made concessions.

Ryan, a Shyft Policy Board member, identified ethics, consumer protection, illicit finance, and stablecoin rewards as unresolved issues. He said support for federal crypto rules remained bipartisan despite disagreement over the bill’s terms.

For US companies committing money and hiring workers, Ryan argued that regulatory decisions need to last beyond a change in administration. He said agency action could help businesses while Congress negotiated, but firms making long-term investments needed a more durable framework.

According to the September report, Ryan also called for consistent treatment of digital assets so businesses and consumers would not have to resolve classification questions through individual court cases.

Hill’s timetable places those negotiations after an election that will determine which lawmakers return to Washington. In describing the 22-day Senate window, he noted that members would enter the session knowing whether they were returning to Congress or leaving in January.

SEC and CFTC leadership vacancies total seven seats

The supplied report also described reduced leadership at both financial regulators as of Oct. 7, with seven commissioner vacancies across the two agencies.

According to the report, Hester Peirce announced her resignation from the SEC the previous week, leaving Atkins and Commissioner Mark Uyeda as its remaining members.

At the CFTC, the report identified Selig as both chair and sole commissioner.