Senate Banking Committee Announces First Subcommittee on Cryptocurrency: Report

The US Senate Banking Committee, led by Chairman Tim Scott, plans to establish its first subcommittee dedicated to cryptocurrency.

This initiative marks an important milestone in the Senate’s approach to regulating the digital assets industry.

Cynthia Lummis selected as president

Fox Business reporter Eleanor Terret shared the development in a Jan. 10 post on X, noting that Sen. Cynthia Lummis has been tapped to head the subcommittee. However, his appointment remains subject to approval in a vote planned for the near future.

According to a previous report, establishing the initiative is one of Scott’s first priorities as chairman of the Senate Banking Committee. This body plays a critical role in overseeing major financial regulators, such as the Securities and Exchange Commission (SEC) and the Federal Deposit Insurance Corporation (FDIC).

The South Carolina lawmaker plans to structure the new entity from a similar crypto-focused subcommittee established by Patrick McHenry in 2023 under the House Financial Services Committee.

In 2024, the House passed a major crypto bill known as the Financial Technology and Innovation for the 21st Century Act (FIT21), developed by its crypto branch. This legislation aims to clarify the regulatory responsibilities of various agencies that oversee the crypto industry.

Congressman French Hill, one of the co-authors of the legislation, previously highlighted its strong consumer protections, including a ban on commingling of customer funds, which he believes will prevent collapses like FTX’s.

Meanwhile, Hill was also recently appointed as the new chairman of the House Financial Services Committee, succeeding McHenry.

Committee members

According to an internal memo issued by Scott and reviewed by FOX Business, Republican members who have been tapped for the new division include freshman senators Bernie Moreno of Ohio and Dave McCormick of Pennsylvania, as well as Thom Tillis of North Carolina and Bill Hagerty of Tennessee. . All describe themselves as strong proponents of cryptography.

It is not yet clear which Democratic leaders will join the new team. However, Elizabeth Warren, a prominent crypto critic, is the most senior member of the party on the Senate Banking Committee.

This development comes a few days after the Republicans officially assumed control of the Senate, consolidating their legislative majority. With President-elect Donald Trump’s inauguration set for January 20, the party will maintain unified control of both Congress and the White House.

The formation of the subcommittee is seen as an important step toward fulfilling the GOP’s pledge to advance crypto-related legislation, in line with Trump’s pledge to position the United States as a world leader in the digital asset industry.

SPECIAL OFFER (Sponsored) Binance Free $600 (Exclusive to CryptoPotato): Use this link to register a new account and receive an exclusive welcome offer of $600 to Binance (full details).

LIMITED OFFER for CryptoPotato readers on Bybit – Use this link to register and open a FREE $500 position with any currency!