Summary
- French Hill said the CLARITY Act could resolve issues left open by the GENIUS Act.
- Hill noted the House passed the CLARITY Act with bipartisan backing, including 78 Democratic votes.
- Lawmakers aim to ensure equal rules for bank and nonbank stablecoin issuers, Hill said.
French Hill, chair of the U.S. House Financial Services Committee, said the CLARITY Act could help address unresolved issues in the GENIUS Act.
French Hill remarks on CLARITY and GENIUS Acts
Hill discussed concerns raised by banks about how crypto firms may be regulated under the proposed framework, according to a Fox Business interview. The lawmaker pointed out that the House had already passed the CLARITY Act with bipartisan support.
“In the House last summer, we created the act, and we passed CLARITY Act in the House, with 78 Democratic votes,” Hill said. The legislation is part of broader efforts in Washington to define how stablecoins and other digital assets should operate within U.S. financial markets. Policymakers are also debating whether crypto firms should face the same oversight as banks.
Hill said lawmakers from both parties have already agreed on one key principle. “On a bipartisan basis we said stablecoin should not pay yield,” he said. The issue has become central to discussions around the GENIUS Act. That bill focuses on the regulatory framework for stablecoin issuers.
Hill suggested that some remaining concerns could be addressed through the CLARITY Act. “In my view this independent issue can be resolved in the CLARITY Act,” he said.
He also indicated that certain questions may be handled through regulatory rulemaking rather than new legislation. In particular, he pointed to potential rules on rewards or incentives tied to stablecoin transactions.
“I think all the issues about paying rewards should be dealt with in the regulatory proposal that Treasury has to come up with,” Hill said. “I think that’s best resolved in the GENIUS Act,” he added.
Banks Oppose CLARITY Act
Major banks have argued that crypto companies could gain a competitive advantage if they operate under lighter regulation. Executives from traditional finance have called for equal standards across the industry.
Hill said parity between different issuers is a key objective. “We want equal treatment between bank and nonbank issuers of stablecoins,” he said. The debate has drawn comments from banking leaders such as Jamie Dimon of JPMorgan Chase & Co.
Some executives have questioned whether the proposed legislation gives crypto firms too much flexibility. Hill said lawmakers want to avoid regulatory imbalance as the market evolves. “All issuers should be treated the same way,” he said. “You don’t want to have an imbalance between people using a dollar-backed stablecoin on their platform,” Hill remarked.