Key Takeaways
- Senator Cynthia Lummis was appointed as chair of the newly formed Senate Banking Subcommittee on Digital Assets.
- The subcommittee aims to advance bipartisan legislation for a comprehensive digital asset legal framework.
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Senator Cynthia Lummis, a known Bitcoin advocate, has been appointed chair of the Senate Banking Subcommittee on Digital Assets following an earlier vote on Thursday, according to a new press release.
The subcommittee, a newly established body under the Senate Banking Committee after Republicans gained control of the Senate, is the first-ever oversight body dedicated to digital assets. Senator Tim Scott, as the new chairman of the Senate Banking Committee, previously tapped Lummis to lead the subcommittee, according to FOX Business.
“Digital assets are the future, and if the United States wants to remain a global leader in financial innovation, Congress needs to urgently pass bipartisan legislation establishing a comprehensive legal framework for digital assets and that strengthens the US dollar with a strategic bitcoin reserve,” Lummis said. “I am humbled my colleagues have placed their trust in me to chair this historic subcommittee and I look forward to shepherding bipartisan legislation to President Trump’s desk this year that secures our financial future.”
The Senate’s new digital assets subcommittee intends to expand upon the initiatives of its House predecessor, which crafted FIT21 legislation. This bill, passed by the House in May 2024, establishes a clear regulatory framework for digital assets, addressing consumer protection and market structure concerns.
Pending Senate approval, the bill previously faced opposition from the Biden administration. The former president issued a Statement of Administration Policy opposing the bill, noting that it “lacks sufficient protections for consumers and investors.”
The formation of the subcommittee aligns with the Republican party’s focus on crypto legislation and supports President Donald Trump’s campaign pledge to position America as a global crypto hub.
The Senate Banking Subcommittee on Digital Assets has two main priorities: crafting bipartisan legislation for digital assets and keeping a close watch on federal financial regulators.
On the legislative front, the goal is to develop laws that encourage responsible innovation in the digital asset space while also protecting consumers. This includes tackling issues like market structure, stablecoins, and even exploring the idea of a strategic Bitcoin reserve.
In November 2024, Lummis unveiled the Boosting Innovation, Technology, and Competitiveness through Optimized Investment Nationwide (BITCOIN) Act, a proposed bill that would enable the federal government to buy 1 million Bitcoins within five years. This acquisition would roughly equal 5% of all Bitcoin supply.
The newly formed subcommittee will also be actively overseeing how federal financial regulators are operating, making sure they’re following the rules and preventing anything like a repeat of “Operation Chokepoint 2.0.”
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