Emily Walker
With the new administration that supports cryptocurrencies in charge, the industry is beginning to experience much-needed reforms in regulatory practices aimed at advancing the sector. In light of the formation of the inaugural crypto-focused US Senate banking subcommittee, Senator Cynthia Lummis has introduced her team of digital assets experts.
Bipartisan Formation of a Digital Assets Subcommittee
On Monday, Senator Cynthia Lummis announced the establishment of a Senate Subcommittee for Digital Assets which features an equal mix of four Democrats and four Republicans.
Lummis expressed her enthusiasm on X, dubbing the members “the digital asset dream team.” The roster comprises Republican Senators Thom Tillis, Bill Hagerty, Dave McCormick, and Bernie Moreno, along with Democratic Senators Ruben Gallego, Tina Smith, Mark Warner, and Chris Van Hollen.
The prior week, the US Senate Banking Committee, under Senator Tim Scott’s leadership, initiated this digital assets subcommittee, appointing Senator Lummis as its chairwoman.
The subcommittee aims to craft bipartisan legislation to “encourage responsible innovation and protect consumers,” focusing on elements like market structure, stablecoins, and a Strategic Bitcoin Reserve (SBR).
It will also perform thorough oversight of federal financial regulators to ensure compliance with the law and prevent issues similar to “Operation Chokepoint 2.0” from recurring.
Lummis mentioned her eagerness to guide bipartisan legislation to President Trump’s desk this year, enhancing the financial future.
Is the Pro-Crypto “A-Team” Established?
While some members advocate for cryptocurrency, others in the subcommittee have shown less enthusiasm for the sector. Concerns have been raised by community members regarding Senators who have previously criticized the industry.
According to rankings from the Super Political Action Committee known as Stand With Crypto (SWC), Senators Smith, Warner, and Van Hollen are categorized as either “strongly against” or “somewhat against” cryptocurrency.
In the previous year, these three Democratic Senators opposed a move to counter the SEC’s Staff Accounting Bulletin 121 (SAB 121), which had been labeled a regulatory overreach by the agency.
In 2022, for example, Smith collaborated with Senators Elizabeth Warren and Richard Durbin in expressing disapproval of Fidelity’s Bitcoin 401(k) retirement plan, describing BTC as a “volatile, illiquid, and speculative asset.” Both Senators Smith and Van Hollen co-sponsored Warren’s Digital Asset Anti-Money Laundering Act of 2023.
However, it should be noted that five out of the eight subcommittee members are seen as “strongly supportive” or “somewhat supportive” of the industry, with crypto PACs endorsing McCormick and Moreno during their campaigns.
The “Dream Team” announcement was met with positivity from the community, with some even referring to it as “The A-team.” Michael Saylor, the founder of MicroStrategy, commented on the post highlighting the importance of establishing the right digital assets framework for success.
This subcommittee focused on digital assets is anticipated to work towards clearer and more favorable regulations that reconcile innovation with regulatory oversight.
