On March 25, 2025, House Financial Services Committee Chairman, Representative French Hill, stressed the need for inclusive capital markets that benefit all Americans. Testifying at a hearing on the economic growth function of capital markets, Hill emphasized supporting firms throughout their lifecycle and increasing investment opportunities for retail investors.
The Need for Inclusive Capital Markets
Chairman Hill emphasized that capital markets should be made accessible to everyone, not just large businesses or institutional investors. He highlighted the importance of Small and Medium Enterprises (SMEs), which are the backbone of the American economy, driving innovation and job creation. However, these companies face numerous barriers when it comes to accessing capital. Hill proposed regulatory reforms aimed at simplifying these constraints, allowing SMEs to thrive and play a greater role in economic growth.
Balancing Regulation with Growth
In line with the new government’s deregulatory agenda, Hill expressed concerns that the “calcification” of regulations could stifle the competitiveness and profitability of commercial and community banks. He called for the elimination of unnecessary or redundant regulations to foster a more competitive and dynamic banking industry. This approach is designed to make capital more accessible to businesses and stimulate economic growth.
Pleading for Transparent Cryptocurrency Regulations
Acknowledging the growing importance of digital assets, Hill urged lawmakers to create a clear regulatory framework for cryptocurrencies. As the former chair of the committee’s subcommittee on digital assets, Hill played a pivotal role in developing legislation aimed at providing strong regulation for the cryptocurrency market. His efforts reflect a commitment to fostering innovation while ensuring consumer protection and market stability.
Improving Capital Formation and Public Listings
Hill also addressed the challenges that firms face when going public and staying public. He proposed reforms to simplify the capital formation process, reducing the cost and complexity for firms to raise capital in public markets. By lowering the barriers to going public, Hill aims to expand the number of public companies, creating more investment opportunities for individual investors and improving market liquidity.
Bipartisan Support and Industry Praise
Hill’s efforts have garnered bipartisan support and praise from business groups. His extensive experience in both the private and public sectors positions him well to navigate the complexities of financial regulations and advocate for the interests of various constituencies. A veteran community banker and former Treasury Department employee, Hill brings a wealth of experience and a centrist perspective to his role as chairman.
Looking Ahead
Chairman Hill’s recent statements and proposed legislation signal a commitment to building a more inclusive and efficient capital market system. By addressing regulatory issues, advocating for transparent cryptocurrency laws, and making it easier for investors to access public markets, Hill is dedicated to ensuring that U.S. capital markets serve all Americans, driving economic growth and creating opportunities for every citizen.
