United States Representative French Hill – who serves as the representative for Arkansas’s 2nd congressional district – told Cryptonews that Republican SEC Commissioner Hester Peirce will “probably be the new acting chair of the US Securities and Exchange Commission (SEC).”
The Arkansas Republican spoke exclusively with Cryptonews about the matter during the North American Blockchain Summit (NABS), an event hosted this week by the Texas Blockchain Council in Dallas, Texas.
“We look forward to the Trump SEC Chairman,” Congressman Hill said. “When Gary Gensler steps down on Jan. 20 next year, the Republican will become the acting chair of the SEC. That may be Hester Peirce – she will probably be the acting chair of the SEC.”
Congressman Hill shared his thoughts shortly after the announcement that Gary Gensler was to resign from his role as head of the SEC. Mr Gensler confirmed the news on social media platform X after the SEC said its 33rd chairman would step down on 20 January 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 on the matter, saying, “Gensler was a real disappointment for the crypto ecosystem.”
Congressman Hill explained this was because Gensler operated on “regulation by enforcement.”
“Gensler was virtually incoherent about the crypto industry,” Congressman Hill said.
Congressman Hill added that the SEC will not be able to solve all the problems currently facing the US crypto industry. He noted that Congress will have to work together with the SEC to pass laws to ensure fair enforcement of digital assets moving forward.
It’s notable that Congressman Hill views Hester Peirce as a replacement for Gary Gensler. Peirce – also known as “Crypto Mom” – is one of the most vocal crypto proponents at the federal level in the United States.
Galaxy Digital CEO Mike Novogratz has also predicted that Peirce may serve as the SEC Chair. Novogratz added that Robinhood’s legal chief, Dan Gallagher, might 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 the worst thing ever for the crypto industry,” Congressman Emmer said.
The Minnesota Republican further remarked that the SEC’s mission is to “make sure all Americans can participate in great 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
Yet Congressman Emmer believes that Mr. Gensler has been trying to prevent this from happening.
“Digital assets are the fastest growing area of finance, and we should be the ones innovating and allowing for growth, but Gensler has been terrible,” Congressman Emmer said.
Although Congressman Emmer didn’t make specific predictions about who may replace Mr. Gensler, he thinks Americans will see “someone in the SEC more friendly to digital assets.”
Congressman Emmer further remarked that President-Elect Trump had known plans to fire Mr. Gensler once elected.
“Gensler knew that it was time to go and didn’t drag it out,” Congressman Emmer said.
How US Crypto Policy May Advance
Congressman Hill and Congressman Emmer also expressed legal frameworks around digital assets they hope to see implemented under the new Trump administration.
Congressman Hill believes that 2025 will be an important year for advancing the digital asset agenda.
“I think this is a real opportunity to have The House, The Senate and The Trump Administration work together,” he said. “Writing bi-partisian legislation would open the door to a US-dollar backed American stablecoin and market structure.”
Congressman Hill noted that such legislation would enable Web3 coders and innovators to write applications on blockchain networks without the fear of being sued or put out of business.
Congressman Emmer remarked that the US still needs clear rules for stablecoins. He noted that the different stablecoins legislation proposals so far have not been to his liking.
For example, Congressman Emmer mentioned that he was not fond of the recently published stablecoin legislation by US Representative Maxine Waters. According to Congressman Emmer, Waters’ bill would allow states to implement a stablecoin policy but would still be subject to the Federal Reserve.
“That is not a state-based system,” Congressman Emmer said. “I think what makes the US special is that we have different states that can try things – one state might do something well that another can copy or improve on. I don’t think stablecoins should be just a ‘US’ issue.”
He added that a US stablecoin bill “doesn’t have to be overly complicated,” noting that the most important factor is going to be reserve requirements for stablecoins and how the US ensures those requirements are met.
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 mentioned that he is for a consistent tax approach for Bitcoin that shouldn’t look any different from other assets of value.
Currently, the US Internal Revenue Service (IRS) views cryptocurrencies as property rather than currency. This means that cryptocurrencies are taxed the same as stocks and ETFs.
This creates complexities, though. Congressman Hill mentioned that Bitcoin’s volatile nature leads to questions about whether the asset is viewed as capital gains tax or should be treated like ordinary income.
“This is something that we made mistakes on in Congress last year, and that needs to be fixed in Trump’s Tax Cuts and Jobs Act,” Congressman Hill said.
Echoing this, Congressman Emmer explained that the US needs to be more “fair” regarding Bitcoin and taxes.
“We need to protect Bitcoin holders from a sudden huge tax bill. We have ideas as to how to solve this problem, but we need the crypto industry to help us,” he said. “Big governments don’t understand that taxes drive human behavior – so we need to get this one right.”
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