House Financial Services Committee

Key Insights

• The House Financial Services Committee (“HFSC”) is critical to crypto policy because it has jurisdiction over key policy issues and financial regulators.
• Under Chairman McHenry’s leadership, HFSC advanced five crypto bills out of Committee this year, including comprehensive market structure and stablecoin legislation. However, the bills still need to pass the full House of Representatives and are likely to face resistance by Senate Democrats.
• In addition to advancing legislation, HFSC Members have pushed back against regulatory overreach, including the SEC’s regulation by enforcement approach and Treasury’s proposed tax rules for digital asset brokers. The pushback has come at Congressional hearings and by writing letters to agency heads.
• Because the Senate Banking Committee (HFSC’s Senate counterpart) is chaired by crypto-skeptic Senator Sherrod Brown (D-OH), HFSC-passed legislation likely faces an uphill battle in the Senate. But, the Senate Banking Committee could have a pro-crypto Chairman by 2025 if Republicans take control of the Senate as a result of the 2024 elections.

Jurisdiction

The House Financial Services Committee (“HFSC”) is one of the most influential committees on crypto policy. Its jurisdiction spans the economy, banks, securities, and exchanges.