Emily Walker
As President-elect Donald Trump prepares to take office, there is a growing interest in regulating cryptocurrencies among lawmakers, indicating a shift from the previous administration’s stance on digital assets.
New Focus on Crypto Regulation in Congress
Chairman Tim Scott (R-S.C.) recently shared the legislative and oversight goals for the US Senate Committee on Banking, Housing, and Urban Affairs. His priorities include creating a strong regulatory framework for digital assets.
Scott articulated his aim for Congress: “My goal for this Congress is simple: make America work for Americans.” He highlighted the importance of finding solutions to critical national issues, from federal housing policies to bolstering economic security.
As the 119th Congress convenes, Scott expressed his readiness to work with the Trump administration and fellow lawmakers to enhance financial inclusion and create opportunities across the country. “The American people gave Congress a mandate – let’s get to work,” he added.
A key element of Scott’s agenda is the creation of a regulatory framework for cryptocurrencies. He criticized the previous SEC leadership under Gary Gensler for its unclear regulatory stance, which has allegedly hindered innovation and forced many projects to operate abroad.
The Banking Committee’s objective is to develop a specialized approach to the trading and safeguarding of digital assets that ensures consumer protection, education, and compliance with the Bank Secrecy Act requirements.
New Digital Assets Subcommittee Under Scott
In a notable development, the Senate Banking Committee has launched its first-ever subcommittee focused solely on digital assets.
This initiative reflects Senate Republicans’ dedication to advancing cryptocurrency legislation and fulfilling Trump’s pledge to establish America as a leader in the global crypto market.
The formation of this subcommittee is among Scott’s early actions as chairman, demonstrating a proactive attitude towards financial innovation. He intends to emulate the success of the digital assets subcommittee initiated by former Congressman Patrick McHenry in 2023.
This earlier committee made a significant impact by passing the “FIT21” bill, which sought to create a regulatory framework for digital assets. The bill is still awaiting further discussion and a vote in the House, and if it progresses to the Senate, it could facilitate the implementation of comprehensive regulations.
To lead the new subcommittee, Scott has provisionally chosen Senator Cynthia Lummis from Wyoming, a strong proponent of Bitcoin, subject to an approval vote soon.
Lummis’ appointment indicates a commitment to cultivating a welcoming environment for groundbreaking financial technologies and digital asset solutions, such as stablecoins, designed to promote financial inclusivity.
As this unfolds, Bitcoin, the market’s leading cryptocurrency, is currently trading at $99,200, reflecting a 3.3% increase within the last 24 hours.
Image credit to DALL-E, chart information from TradingView.com.