J. Hill

Mr. HILL of Arkansas

Mr. HILL of Arkansas. Mr. Speaker, pursuant to House Resolution 580, I call up the bill (H.R. 3633) to provide for a system of regulation of the offer and sale of digital commodities by the Securities and Exchange Commission and the Commodity Futures Trading Commission, and for other purposes, and ask for its immediate consideration in the House.

Mr. HILL of Arkansas. Mr. Speaker, I yield myself such time as I may consume. I rise in strong support this morning of the CLARITY Act. We have been here before, Mr. Speaker. Just last year, we passed landmark legislation, FIT21, with an overwhelming bipartisan majority to apply strong Federal standards to digital asset markets. For more than 5 years, our committee has heard from dozens and dozens of experts, held numerous roundtables and hearings with market participants of all sizes in all segments of the market to learn more about the emerging digital asset ecosystem. We learned about the value proposition and relevant risks associated with digital assets and the use of blockchain technology. We have heard time and time again from market participants and regulators about the need for clear regulatory guardrails. We have talked about the need to fill those regulatory gaps that have left millions participating in crypto markets vulnerable. In fact, Mr. Speaker, both President Biden in his Executive Order 14067, and President Trump in his Executive Order 14178, identified those market regulatory gaps, asking Congress to act to fill those gaps. In 2022, we certainly witnessed consumer harm when the Financial Services Committee heard unprecedented testimony from an expert called in to clean up the failed digital asset crypto firm FTX and the mess it left behind. In his words, never had he seen such an utter failure in corporate controls. In its wake, then-Chairwoman Waters wisely stated: ``We need legislative action to ensure that digital assets entities cannot operate in the shadows outside of robust Federal oversight and clear rules of the road.'' If we needed actions then, we certainly need it now. We risk history repeating itself, and that is why we gather today on the House floor. After years of bipartisan work and numerous iterations, this bill would apply rigorous rules to digital asset firms, prohibiting commingling of customer funds, and requiring capital recordkeeping and conflict of interest mitigation standards. Importantly, the bill recognizes that decentralized finance, or DeFi, developers do not take custody of user assets nor do they control user assets. Therefore, we should not treat them in the same way that we treat centralized actors who do have custody and who do have control over assets. It is important to note that in an Agriculture Committee hearing, the former general counsel of FTX USA himself testified: Had we the regulatory structure provided for in CLARITY applied to FTX, its story--and he goes on to say--would almost certainly have had a much different ending. Let's ensure that we learn from the past, Mr. Speaker, the digital asset ecosystem is evolving at a remarkable pace, enabling real-time settlement of peer-to-peer transactions, initiating a renaissance in applied cryptography and laying the groundwork for the next generation of the internet. The United States has long had the most innovative financial and technology sectors and the deepest and most liquid capital markets, but while other jurisdictions are building frameworks for the future of finance to be on-chain and digitally native, our great country, with those great characteristics, is lagging. For too long our digital asset regime has been the worst of both worlds: regulation by enforcement, which has pushed good actors to leave the United States, and the regulatory gaps that I talked about identified in both President Biden and President Trump's executive orders that have left consumers unprotected from the bad actors. Now, today, we have an opportunity to reverse course and reestablish the United States as the global hub for digital innovation. To do so, we must close the regulatory gaps with commonsense rules. Mr. Speaker, the CLARITY Act does just that by leveraging the expertise of our two market regulators, the Securities and Exchange Commission and the Commodity Futures Trading Commission, to ensure wraparound oversight of digital asset markets, from initial sales, raising capital, to daily trading, it provides clarity for banks engaging in this ecosystem. As we said in the last Congress, Mr. Speaker, these rules need to be fit for purpose for the digital ecosystem. All of us on this House floor know that the status quo is simply unacceptable. We all know American consumers and innovators deserve this clarity. They deserve better. They deserve rules of the road. The choice before us is whether to lead in the financial markets of the future or watch the next FTX fail while we are left saying once again: Well, we have been here before. Mr. Speaker, I urge all my colleagues to join me on both sides of the aisle and support the CLARITY Act. Let's fill these regulatory gaps with the proper Federal oversight. Let's create a competitive digital ecosystem. I support this bill, and I urge my colleagues to. Mr. Speaker, I reserve the balance of my time.

Mr. HILL of Arkansas. Mr. Speaker, I include in the Record the CBO estimate for this bill.

Mr. HILL of Arkansas. Mr. Speaker, I yield 2 minutes to the gentleman from Wisconsin (Mr. Steil). Mr. Speaker, the gentleman is an essential leader in our committee and also the chairman of our Subcommittee on Digital Assets, Financial Technology, and Artificial Intelligence.

Mr. HILL of Arkansas

Mr. HILL of Arkansas. Mr. Speaker, I yield 1 minute to the gentleman from California (Mr. Kiley), who represents the prettiest district outside Arkansas.

Mr. HILL of Arkansas. Mr. Speaker, I yield 1 minute to the gentleman from North Carolina (Mr. McDowell), our new Member.

Mr. HILL of Arkansas. Mr. Speaker, I yield 2 minutes to the gentleman from Pennsylvania (Mr. Meuser), chairman of our Subcommittee on Oversight and Investigations.

Mr. HILL of Arkansas. Mr. Speaker, I yield 2 minutes to the gentleman from Tennessee (Mr. Rose).

Mr. HILL of Arkansas. Mr. Speaker, I yield 2 minutes to the gentleman from Indiana (Mr. Stutzman), a returning member of the House Financial Services Committee.

Mr. HILL of Arkansas. Mr. Speaker, I am prepared to close, and I reserve the balance of my time.

Mr. HILL of Arkansas. Mr. Speaker, I have the pleasure to introduce the author of this important legislation, and I yield 4\1/2\ minutes to the gentleman from Minnesota (Mr. Emmer), the majority whip of the U.S. House of Representatives.

Mr. HILL of Arkansas. Mr. Speaker, I yield myself the remainder of my time. Mr. Speaker, first, I will thank the members of the House Financial Services Committee and the members of the House Agriculture Committee for all the work that they have put in on both sides of the aisle. It was significant hours for multiple years, basically the last three Congresses, in thinking through what is the future of digital assets, how are they best regulated, what is the role of United States Government in oversight, what is the future of money in terms of the use of a blockchain. Members in these committees have worked extensively. Likewise over in the Energy and Commerce Committee, the idea of blockchain technology at large outside financial institutions has garnered a tremendous amount of bipartisan work. This House wants to make sure that we prepare this country for a prosperous, free, open Web3 technology as we go into seeing the benefits of writing applications on a blockchain. We will see competition in blockchains, just as we saw competition in operating systems in computing. I think that breeds a lot of excitement. No one can actually do that if we don't have clear rules of the road. We have spent this morning debating those rules of the road. The CLARITY Act that we debated on this House floor provides that market framework for the use of digital assets, custodying digital assets, investing in digital assets, or dealing or raising capital around them. It clearly defines what should be treated as a commodity versus what should be treated as a security. We talked about that important payment device on a blockchain for use in that marketplace that is outlined in the CLARITY Act. That is a dollar-backed stablecoin. We want the U.S. to dominate in financial technology and payments, just as we do for the vast majority of payments around the world in dollars. That is delivered by the bipartisan work in the Senate on the GENIUS Act. I want to start by thanking those Members. I also recognize the incredibly hardworking staff members on the House Committee on Agriculture and the House Committee on Financial Services who have worked together unbelievably, capably, cooperatively, and effectively over these last two Congresses, as they did at the height of the cleanup from the financial crisis in 2008 when House Financial Services and the Agriculture Committee came together to write rules about the swap market. I particularly thank Nick, Jack Jackson, Lindsey, and Paul on the staff at the House Agriculture Committee. They did great. I thank Nick, Allison, and our team at House Financial Services for their staff leadership. Mr. Speaker, this bill we are debating today is essential. The ranking member seems to think that I am interested in the subject of a central bank digital currency, and I am. I have spent the better part of the last 5 years studying central bank digital currencies outside the United States and talking to officials inside the United States about whether that is a good idea or a bad idea. Over those years, it is not out of ignorance that I have come to the conclusion that it is a bad idea. One of the contributing factors to my determining that I don't believe it is an idea whose time has come, to supplement private-sector innovation in this Nation, is actually Congressman Jim Himes' white paper that he shared with me years ago. I thought it was well-written, and it was another indication that this was not the direction to go in. Since that time, I have visited with other central banks around the world, in Europe and other places, that make me even more certain that we should rely on private-sector innovation that, in turn, can create the tokenized money, which we have talked about all morning, but doesn't do it in a way that can surveil your work, take over your life, have outcomes that you heard from Congressman Davidson and Congressman Emmer, about the examples of debanking that we witnessed in Canada or the policy debanking we witnessed in the Obama administration and, to a degree, the Biden administration. Americans have made it clear: We don't want the Federal Government controlling how we spend, save, or send our money in our personal lives. We have witnessed firsthand the dangers when government wields that power unchecked, and you heard examples of that this morning. Americans want and deserve control over their own money, and we have tried to institutionalize that in all the work we have done in both of these committees in this digital assets innovation and reform space. We believe in self-custody. I have self-custody in the analog world of cash and investments. Why can't I have that custody, that self- control, in my digital financial space? I don't understand why one can't recognize the authorities that we have on our person-- constitutionally guaranteed, guaranteed by law--in an analog context? Why can't we demand the same? Mr. Speaker, I urge my colleagues to join me in supporting this bill, and I yield back the balance of my time.

Mr. HILL of Arkansas. Mr. Speaker, pursuant to House Resolution 580, I call up the bill (H.R. 1919) to amend the Federal Reserve Act to prohibit the Federal reserve banks from offering certain products or services directly to an individual, to prohibit the use of central bank digital currency for monetary policy, and for other purposes, and ask for its immediate consideration in the House.

Mr. HILL of Arkansas

Mr. HILL of Arkansas. Mr. Speaker, I recognize the chair of our Subcommittee on Digital Assets, Financial Technology, and Artificial Intelligence, who crafted the STABLE Act, which is the base text that led to this joint, good work between the House and Senate. I yield 3 minutes to the gentleman from Wisconsin (Mr. Steil).

Mr. HILL of Arkansas. Mr. Speaker, I yield myself such time as I may consume. Mr. Speaker, I rise in strong support of the Senate GENIUS Act, and I thank my colleague and longtime friend, Senator Bill Hagerty of Tennessee, for his leadership in ushering this bipartisan bill through the United States Senate. Around the world, payment systems are undergoing an evolution. New technologies are modernizing legacy infrastructure and unlocking innovative solutions to improve efficiency, reduce costs, and expand access to financial services. Members of the House Financial Services Committee have long recognized the promise of payment stablecoins and have worked since 2022 to establish a legislative framework. Last Congress, under the leadership of former Chairman Patrick McHenry of North Carolina, the committee passed the Clarity for Payment Stablecoins Act of 2023. This bill provided for bank and nonbank pathways for issuers to obtain regulatory approval, preserve State- level oversight, and set standards for reserve composition, audits, and sound risk management. When the 119th Congress started in January, we picked up this effort. In close coordination with the Senate Banking Committee and our base legislation, our legislative work over the past 2 years has laid that foundation for the progress made in both the House and the Senate. Today, we have an opportunity to send stablecoin legislation to President Trump's desk. This is a multi-Congress priority item, and it ensures American competitiveness and strong guardrails for our consumers. We should not, Mr. Speaker, squander that opportunity. This priority has been agreed to by both President Biden, with his executive order, and President Trump in his Executive Order 14178. Mr. Speaker, through multiple versions of stablecoin legislation, the House and Senate have shared ideas and crafted workable approaches. Our joint efforts before us helped enhance the legislation on the floor this morning. I recognize the hard work of my friends in the Senate to get the core fundamentals of what payment stablecoin legislation demands. I also recognize the diligence and thoughtful work of my colleagues here in the House, including the chairman of our Subcommittee on Digital Assets, Financial Technology, and Artificial Intelligence, Bryan Steil, who championed and worked through our committee through markup in successfully designing, writing, and passing in committee the STABLE Act. I thank my House colleagues for their principled approach to key policies that guided and distinguished our efforts particularly around State regime oversight, the reserve composition, the anti-money laundering, and territorial integrity issues around stablecoins, and, finally, the corporate structure of issuers. Furthermore, it is my firmly held belief that only by enacting payment stablecoin legislation and, Mr. Speaker, I repeat, and comprehensive market structure reform in this Congress, like we just debated a few minutes ago, the CLARITY Act, only by passing both will this Congress fully usher in the era of digital finance and ensure that consumers are protected whenever they engage with digital assets. Mr. Speaker, I urge all my colleagues to join me in supporting this bill and sending it forward to 1600 Pennsylvania Avenue for President Trump to sign into law. Mr. Speaker, I reserve the balance of my time.

Mr. HILL of Arkansas. Mr. Speaker, I yield 2 minutes to the gentleman from Nebraska (Mr. Flood), who chairs our Subcommittee on Housing and Insurance.

Mr. HILL of Arkansas

Mr. HILL of Arkansas. Mr. Speaker, I thank the chairman for yielding time. Mr. Speaker, I rise in strong support of H.R. 1, the One Big Beautiful Bill Act. For too long, government spending has gone unchecked. Last November, American voters sent a clear message. We need to rein in government spending. Our Financial Services title exceeds our $1 billion budget instruction by over $600 million. It caps the Consumer Financial Protection Bureau's budget authority by nearly half. It rescinds unobligated and unused funds from the SEC's reserve fund and HUD's Green and Resilient Retrofit Program. It targets $1 billion for strategic use under the Defense Production Act to ensure that America can meet its national security supply chain requirements for the 21st century. Overall, this bill stops a huge tax increase for our working families in Arkansas. It spurs major investments for small businesses. It gives law enforcement the tools they need to secure our southwest border. It strengthens energy security. It reduces government spending. Mr. Speaker, it delivers on the promises that we made to American voters. I strongly support this bill, and I urge a ``yes'' vote.

Mr. HILL of Arkansas

Mr. HILL of Arkansas. Mr. Speaker, I rise in support of H.R. 275, the Special Interest Alien Reporting Act. This bill requires the Secretary of Homeland Security to publish monthly reports on the number of special interest aliens attempting to unlawfully enter the U.S., including specifications on the encounter location and the alien's country of origin. During President Biden's tenure, we saw an unprecedented number of special interest aliens from China, Iran, and Russia. A special interest alien is a person who poses as a potential threat to the United States. This is alarming and a national security risk. Last Congress, I asked the Biden Administration to be transparent about encounters with known or unknown terrorists entering our country. Their answers were unsatisfactory. Publishing the number of special interest aliens who have been granted entry to the U.S. would educate the public on the risks the U.S. Government is subjecting its citizens to. It would also allow the public to hold the government accountable for its actions. Border Patrol had produced small iterations on this data for 2016 to 2018 and it would be helpful to re-start this publication at a more frequent cadence. I urge you to support H.R. 275.

Mr. HILL of Arkansas

Mr. HILL of Arkansas. Mr. Speaker, I certainly thank our distinguished chair of the subcommittee, Mrs. Wagner of Missouri, for her daily leadership of our agenda to make America more competitive by having the most liquid, competitive capital markets in the world. These bills certainly take a step in that direction to support that goal. I thank my friend from California (Mr. Sherman) for his comments in support of the bill. The gentleman is right, Mr. Speaker. I think we have all learned in our lives that intelligence and wealth aren't directly correlated. This is another example of that, where people are held back from their ability to use their expertise and their knowledge just because they don't have a specific net worth. That is what H.R. 3394, the Fair Investment Opportunities for Professional Experts Act seeks to clarify. Many individuals, whether through work, education, or other experience, have the knowledge to make an informed investment decision, but they are excluded simply because of an income or net worth test. Before I was in Congress, I helped investors and founders start new companies and raise funds through regulation D private placements. I witnessed firsthand on an annual basis routinely how the current accredited investor definition impaired talented, knowledgeable innovators from fully participating up front in their business formation dream. This bill, with my good friend from California, Representative Vargas, would expand the definition of an ``accredited investor'' and allow Americans who can demonstrate education, professional experience, or other similar credentials the opportunity to invest in a private offer. It passed out of our Financial Services Committee 45-1, Mr. Speaker, demonstrating clear, bipartisan support. I agree with my friend from California. This bill is a step in the right direction, offering more Americans a chance to participate in the American Dream, build capital, help start a business, and use their God-given talent, skills, ability, and professional expertise to help that company be successful. Mr. Speaker, I urge a ``yes'' vote from all the Members on both sides of the aisle.

Mr. HILL of Arkansas

Mr. HILL of Arkansas. Mr. Speaker, I rise tonight in support of this reconciliation effort, and I thank my friend from west Texas, the home of national security, for supporting this bill and working hard to bring it to fruition, bringing it to the House floor. Last month, the House Financial Services Committee completed our work assigned to us under the Budget Committee's reconciliation instruction. The resolution asked us to decrease the deficit by $1 billion during the planning period of 10 years. The Financial Services Committee exceeded that objective. We saved for the American taxpayers by cutting the deficit in our plan by $5.2 billion in savings. During the markup, we spent 9 hours debating and considering 40 amendments from our friends on the other side of the aisle. After this exhaustive process, we favorably reported the Financial Services Committee's print to fulfill our obligations under this bill. Mr. Speaker, we can't lose sight of the reason that we are here tonight on this House floor. In 2024, the American people voted for fiscal responsibility and real change. Our country is currently $37 trillion in debt, paying billions of dollars in interest each day on that debt. Congress must act. Today, we start that process. For too long the government spending has been a one-way road in the wrong direction. I am proud of the good work of the Financial Services Committee in doing our part to reduce this deficit. Mr. Speaker, I ask all my colleagues to support this bill.

Mr. HILL of Arkansas

Mr. HILL of Arkansas. Mr. Speaker, while leading a delegation on behalf of the Speaker of the House to the Vatican, I was delayed by unavoidable mechanical issues with my aircraft and was not present for votes. Had I been present, I would have voted YEA on Roll Call No. 132, and YEA on Roll Call No. 133.

Mr. HILL of Arkansas

Mr. HILL of Arkansas. Mr. Speaker, I thank my good friend, Mr. Westerman, and my colleagues in the House who serve on the Natural Resources Committee for working with me on the Flatside Wilderness Additions Act over the past 5 years. I stand in strong support of H.R. 1612, which I think is a model for how to go about considering recreation conservation lands in our national forests. The Ouachita Mountains and the surrounding forest sit in the southwest corner of Arkansas. It is the oldest and largest national forest in our southern region. It has origins in my district of central Arkansas and stretches some 220 miles west into eastern Oklahoma through my good friend, Mr. Westerman's district. It encompasses nearly 10,000 acres of rugged terrain, and the most treasured views in the Ouachita region are in Flatside Wilderness. For those visitors that Congressman Westerman referenced, the area also includes the challenging and very popular Ouachita National Recreation Trail, which bisects Flatside Wilderness. Back in 1984, under the leadership of former Arkansas Senator Dale Bumpers and my predecessor, Congressman Ed Bethune, the Arkansas Wilderness Act was passed and signed into law by President Reagan. This legislation designated Flatside as one of the first Arkansas wilderness areas to be added to the National Wilderness Preservation System. At the time of its passage, the Flatside area was intended to be larger than what was ultimately designated. In 1984, the Forest Service and its Flatside advocates were not able to craft a strategy where all the studied and preferred acres of the forest could be included. As such, Mr. Speaker, when I joined Congress in 2015, I set out to complete that original designed 1984 plan for Flatside. In 2019, with the help of Arkansas Senator John Boozman and Chairman Westerman, we were able to add 640 acres to Flatside, which was signed into law by President Trump. That same year, Senator Boozman and I collaborated on an appropriation measure that directed the Forest Service to complete a study on which the surrounding lands that were eligible to be added to Flatside would be carefully studied. Mr. Speaker, it is the results of that 2019 legislatively directed study that was published in 2021 that are the basis for the law proposal before us today. With the help of my colleagues, this bill will finish the work started some four decades ago in which I have been personally dedicated since joining this House. With this final addition, the Flatside Wilderness area can continue to serve central Arkansas as a place of economic, recreational, and historic importance. First, as Chairman Westerman noted, this is not creating a new wilderness area but simply designating additional land. It has wide support, as noted by my friend, including our local county and city officials in the county where it is located: Governor Sarah Sanders, Arkansas Parks & Tourism, the leadership of our Game and Fish Commission, and many other local leaders and outdoor recreation groups in our State. Rest assured also, Mr. Speaker, the current forest management plan for Flatside already includes prescribed burns, fire suppression techniques, and reiterates the authority of management to protect the area from fire, insects, and disease. So, I thank my friend, Mr. Westerman, for working with me on this. I think it should be supported by all the Members in the House. It is a model, as we have talked about before, for how we bring local officials, outdoor recreation, conservationists, and forest land management people together to advance something that is sought by our local leadership in the State. So I thank Mr. Westerman, Speaker Johnson, Leader Scalise, and Representative Emmer, as well as all the members of the House Natural Resources Committee for working with me on this proposal. As I conclude, Mr. Speaker, I have to say that for four decades this has been an important place in my life. It reminds me of John Muir's famous poem: Climb the mountains and get their good tidings. Nature's peace will flow into you as sunshine flows into trees. The winds will blow their own freshness into you and the storms their energy, while cares will drop off like autumn leaves. Mr. Speaker, I hope future generations of Arkansans and a lot of Texas visitors will enjoy those glad tidings from Flatside. I include in the Record an article titled: ``Opposites Attract: How a Conservative Texan Helped a Liberal Arkansan Enact the Sweeping Arkansas Wilderness Act of 1984.'' Opposites Attract: How a Conservative Texan Helped a Liberal Arkansan Enact the Sweeping Arkansas Wilderness Act of 1984 (By J. French Hill, April 25, 2009) BEFORE THE ARKANSAS HISTORICAL ASSOCIATION SOUTHERN ARKANSAS UNIVERSITY

Mr. HILL of Arkansas

Mr. HILL of Arkansas. Madam Speaker, I rise today to commend Dr. Christina Drale, the chancellor of the University of Arkansas at Little Rock for receiving the E. Joseph Savoie Chief Executive Leadership award. This prestigious honor recognizes presidents and chancellors who demonstrate exceptional leadership in advancing innovation and collaboration within their institutions. Dr. Drale is the first Arkansan in over a decade to receive and earn this recognition. She became the chancellor 5 years ago after serving as the interim executive vice chancellor and provost at UA Little Rock. From the beginning, she led with purpose, implementing significant changes to strengthen the university, such as implementing a partnership program with local businesses, offering employees scholarships for tuition, and other education opportunities at the university. Additionally, under her leadership, UA Little Rock has seen historic enrollment growth and improved retention rates. These are just a few of the examples that highlight her outstanding service, accomplishments, and visionary leadership in higher education in central Arkansas. Madam Speaker, I offer congratulations to Dr. Drale.

Mr. HILL of Arkansas. Madam Speaker, I rise today to recognize the late Raye Montague, whose creativity has earned her a place on the 2025 American Innovation $1 Coin, representing our State of Arkansas. In 1972, Mrs. Montague made history by creating the first computer- generated rough draft of a naval ship, the USS Oliver Hazard Perry. This was a groundbreaking achievement that revolutionized ship design. Mrs. Montague's work has not only reshaped the U.S. Navy's approach to engineering, but demonstrated the transformative power of technology in the defense of our country. Ultimately, for Mrs. Montague's efforts, she was inducted into the Arkansas Black Hall of Fame and the Arkansas Women's Hall of Fame. In addition, she was awarded the Meritorious Civilian Service Award by the U.S. Navy. Upon her return to Little Rock, I was pleased to meet Mrs. Montague and hear her inspirational story firsthand. Montague's visionary coin design was chosen by the Citizens Coinage Advisory Committee. The coin depicts Mrs. Montague and the ship that she crafted with her groundbreaking model. It is fitting that we celebrate Mrs. Raye Montague's legacy. Years later, her work continues to inspire creativity in the field of engineering and technology. Commending Dr. Christina Drale

Mr. HILL of Arkansas. Madam Speaker, I rise today to recognize my good friend, Tom Nichols, a longtime radio host and owner of KVRE, a beloved radio station in Hot Springs Village, Arkansas. Through nearly seven decades on the radio, Tom has done more than inform and entertain. He has a trusted voice, a steady presence, and a true reflection of the character and kindness that define Arkansas at its best. His show, ``Ask Your Neighbor,'' has been on the air for 45 years. It is a daily reminder of the value of connection, offering a place where neighbors can come together, share what matters, and strengthen the bonds of community. Therefore, it is with great pride that we recognize Tom Nichols today for his induction in the Arkansas Walk of Fame, an honor that he has earned many times over for his outstanding contributions to our community. Celebrating Raye Montague's Legacy