The Senate Banking Committee is reportedly on the verge of announcing an inaugural subcommittee dedicated to the oversight of crypto.
The new body is set to be led by Senator Cynthia Lummis, the Republican delegate from Wyoming. She has been tipped to be joined by the likes of fellow Republicans, Senators Bernie Moreno, Dave McCormick, Thom Tillis, and Bill Hagerty.
The panel is likely to have an initial focus on stablecoins.
As part of the fresh government focus on crypto and digital assets, President-elect Donald Trump is determined to establish the United States as the crypto capital of the world. As part of these aspirations, the establishment of the subcommittee can be viewed as a measure to deliver clarity and direction for the industry, and to encourage growth while mitigating risks.
🚨NEW: The Senate Banking Committee, led by @SenatorTimScott, is set to establish its first ever subcommittee dedicated to #crypto. The subcommittee will mirror the @FinancialCmte version established by @PatrickMcHenry in 2023.
A Senate aide confirmed that @SenLummis has been…
— Eleanor Terrett (@EleanorTerrett) January 9, 2025
Bring clarity to the regulatory framework
As reported by Fox Business, the setup of the crypto subcommittee is one of the first mandates from the new chairman of the Senate Banking Committee. As part of his remit, South Carolina Senator Tim Scott will also oversee the banking sector and financial watchdogs such as the Securities and Exchange Commission (SEC) and the Federal Deposit Insurance Corporation (FDIC).
Sen. Lummis has been one of the more vocal proponents of the potential of digital assets, while Scott is said to want to emulate the relative success of the crypto subcommittee established in 2023 by former North Carolina Congressman Patrick McHenry.
The Republican delegate led the way with the progress of the Financial Innovation and Technology for the 21st Century Act (FIT21), which attempted to bring clarity to the regulatory framework. The bill set out to determine if certain digital assets should be classified as securities or commodities, to settle jurisdictional conflicts as a result of the ambiguity.
The upcoming formation of the Senate subcommittee will contribute to the process of introducing effective legislation toward crypto, at a pivotal time in U.S. politics. This sliding doors sentiment is echoed with the recent involvement of President Biden’s administration in the sale of $6.5 billion in seized Silk Road Bitcoin.
Image credit: Via Midjourney
