US Senate Banking Committee Is Promoting First Crypto Subcommittee

Key Points:

• The Senate Banking Committee, led by Senator Tim Scott, is creating the first-ever cryptocurrency subcommittee.
• Republicans, now in control of Congress and the presidency, aim to prioritize crypto legislation.

According to FOX Business, the US Senate Banking Committee, under the helm of Senator Tim Scott of South Carolina, is creating the first-ever crypto subcommittee.

Read more: U.S. Senate Banking Committee Launches Aggressive Inquiry into Crypto Money Laundering Menace

Senate Banking Committee Launches First Crypto Subcommittee

The subcommittee is likely to be chaired by Wyoming Senator Cynthia Lummis, who has been an outspoken crypto advocate. A vote by the Senate Banking Committee to formalize membership is expected imminently.

The subcommittee’s establishment is consistent with Scott’s initial agenda as chairman and with an effort to take the lead in digital asset legislation. It came weeks after the Republicans obtained control of the Senate and just two weeks ahead of the January 20th presidential inauguration of Donald Trump, setting up an all-Republican government.

The new unit is similar to the crypto subcommittee created in 2023 by the House Financial Services Committee under former North Carolina Representative Patrick McHenry. That committee notably pushed out the “FIT21” bill, which created a regulatory framework for digital assets, though that legislation has not moved to the full House or Senate.

Leadership Upheaval Hits SEC and CFTC as Crypto Policy Shift Continues

The Republican-controlled Congress is seeking to roll back the Biden administration’s restrictive cryptocurrency policies, which have been criticized for their spate of regulatory crackdowns dating from 2021 to 2024.

In a related development, Securities and Exchange Commission Chairman Gary Gensler and Commodity Futures Trading Commission Chairman Rostin Behnam said they would step down effective Jan. 20. Both officials had faced increasing pressure from lawmakers for their aggressive enforcement actions against cryptocurrency firms during the Biden era.