U.S. Banking Committee Chair Plans Regulatory Changes

WASHINGTON (Reuters) – The incoming chair of the U.S. House banking committee, Republican Representative French Hill, stated on Friday his intentions to remove regulatory "calcification" in the banking sector when Congress reconvenes in January, aligning with incoming President Donald Trump.

In an interview with CNBC, Hill noted that the committee would focus on establishing a market structure for cryptocurrencies, though he remains uncertain about creating a bitcoin reserve.

> "Let's make community banking and commercial banking competitive again by removing some of the calcification in the regulatory system that's made it hard to be profitable, serve customers, and be safe and sound," said Hill, a former banker chosen to lead the House Financial Services Committee.

He believes there are not too many banks; rather, the regulatory structure promotes consolidation among larger banks due to overwhelming regulatory burdens.

The committee, which oversees bank legislation, plans to remove barriers for companies regarding capital formation, aiming to simplify the processes of going public and remaining so.

With Trump taking office on January 20, he aims to strengthen the U.S. economy through loosening regulations, a move welcomed by banking executives. According to the Wall Street Journal, Trump's team seeks to reduce or even eliminate leading bank regulators.

During his campaign, Trump expressed support for cryptocurrency, having personal financial interests in the sector, and appointed crypto-friendly individuals to key positions. The crypto industry is advocating for policies promoting broader adoption of digital assets.

Hill emphasized the need for a clearer pathway for cryptocurrencies and the possibility of partnerships between financial tech companies and banks in a secure manner. When asked about the proposed U.S. bitcoin reserve, Hill responded, "I'd have to think long and hard about what the value of that is to the United States or the Treasury, but I am certain of this: we need a fair-minded, fit-for-purpose regulatory structure for digital assets in this country."