The Senate Banking Committee announced the creation of its first-ever cryptocurrency subcommittee today, FOX Business reports. Senator Tim Scott of South Carolina leads this move in U.S. crypto regulation, with Wyoming Senator Cynthia Lummis slated for the chair position.
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How the U.S. Senate’s New Crypto Subcommittee Could Impact Market Volatility and Regulatory Uncertainty
Structure and Purpose
The crypto subcommittee formation awaits final membership votes. The group mirrors last year’s House Financial Services Committee initiative under Representative Patrick McHenry, which drafted the FIT21 bill for blockchain regulation. That legislation remains under review.
Leadership Changes
Current regulatory uncertainty faces additional shifts as SEC Chairman Gary Gensler and CFTC Chairman Rostin Behnam announced their January 20 departures. “Both officials had faced increasing pressure from lawmakers for their aggressive enforcement actions against cryptocurrency firms during the Biden era,” FOX Business noted in its report.
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Policy Direction
The subcommittee targets reduced market volatility through clearer rules. Republican control of Congress puts crypto reform at the forefront. The new unit “is consistent with Scott’s initial agenda as chairman and with an effort to take the lead in digital asset legislation,” according to Senate Banking Committee statements.
🚨NEW: The @WhiteHouse says it opposes passage of FIT 21 in its current form but also says it’s eager to work with Congress to “ensure a comprehensive and balanced regulatory framework for digital assets.” pic.twitter.com/CUP860dPsR
— Eleanor Terrett (@EleanorTerrett) May 22, 2024
McHenry’s FIT21 bill created initial frameworks for U.S. crypto regulation last year. This Senate effort now expands that work. Industry sources report continued tension between innovation needs and regulatory uncertainty.
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Upcoming Actions
The subcommittee starts work as Republicans seek changes to Biden-era policies from 2021-2024. Lummis brings crypto advocacy experience to potential leadership. Banking Committee votes on final structure and membership occur next week. Current policies face review as lawmakers tackle blockchain regulation amid ongoing market volatility concerns.