The final membership votes for the formation of the crypto subcommittee are still pending.
Source: TNP
The Senate Banking Committee has announced the formation of its first cryptocurrency subcommittee, according to FOX Business. This initiative in U.S. crypto regulation is being spearheaded by Senator Tim Scott of South Carolina, while Wyoming Senator Cynthia Lummis will chair the committee.
Final membership votes are yet to be cast for the formation of the crypto subcommittee. The group reflects last year’s initiative by the House Financial Services Committee, led by Representative Patrick McHenry, which introduced the FIT21 bill for blockchain regulation. The legislation is under review.
Regulatory uncertainty is set for further changes as SEC Chairman Gary Gensler and CFTC Chairman Rostin Behnam prepare to step down on January 20. “Both officials had faced increasing pressure from lawmakers for their aggressive enforcement actions against cryptocurrency firms during the Biden era,” as per a FOX Business report.
The subcommittee is targeting to reduce market volatility through clearer rules. Republican control of Congress has kept crypto reform at the forefront. According to Senate Banking Committee statements, the new unit “is consistent with Scott’s initial agenda as chairman and with an effort to take the lead in digital asset legislation.”
🚨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
Initial frameworks for U.S. crypto regulation were created by McHenry’s FIT21 bill last year. This Senate effort is currently expanding that work. Industry sources have highlighted ongoing tension between the demand for innovation and regulatory uncertainty.
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Reportedly, the subcommittee has started work as Republicans push for changes to Biden-era policies during 2021-2024. Senator Lummis, well-known for her advocacy of cryptocurrencies, is a strong contender for leadership. The Banking Committee is set to vote on the final structure and membership next week while existing policies remain under review as lawmakers address blockchain regulation due to ongoing market volatility concerns.
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