Crypto Oversight Takes Center Stage as Senate Banking Plans Subcommittee

• The US Senate Banking Committee is set to create the first-ever crypto-focused subcommittee similar to the version created in the House Financial Services Committee in 2023.
• Senator Cynthia Lummis is set to chair the subcommittee with voting scheduled next Thursday.

The new US administration lays its initial foundation to provide clarity for the crypto industry as the Senate Banking Committee led by Republican Senator Tim Scott discloses plans to create the first-ever crypto-focused sub-committee. According to the report first shared by Fox Business journalist Eleanor Terrett, this establishment would mirror the Financial Services GOP created in the House Financial Services Committee by Patrick McHenry.

NEW: The Senate Banking Committee, led by @SenatorTimScott, is set to establish its first-ever subcommittee dedicated to #crypto. The subcommittee will mirror the @FinancialCmte version established by @PatrickMcHenry in 2023. A Senate aide confirmed that @SenLummis has been…— Eleanor Terrett (@EleanorTerrett) January 9, 2025

Cynthia Lummis to Chair?

Delving into this, we found that Senator Cynthia Lummis could chair the subcommittee, but be subjected to a decision through voting that will be participated by both Republican and Democrat Senators next week Thursday.

Lummis has been a long-term crypto advocate, labeling Bitcoin “freedom money.” She is also credited with the 2024 Bitcoin strategic reserve legislation called “Boosting Innovation, Technology and Competitiveness through Optimized Investment Nationwide (BITCOIN) Act in the U.S. Senate.” Lummis also emphasized her position in crypto in a 2021 CNF publication, stating that the asset class should be embraced because they are secure, private, cheaper, and fast.

As featured in our previous report, Lummis’ proposal highlighted the transformational power of Bitcoin to mitigate the adverse impact of the rising inflation rate and national debt.

As families across Wyoming struggle to keep up with soaring inflation rates and our national debt reaches new and unprecedented heights, it is time for us to take bold steps to create a brighter future for generations to come by creating a strategic Bitcoin reserve. Bitcoin is transforming not only our country but the world and becoming the first developed nation to use Bitcoin as a savings technology secures our position as a global leader in financial innovation.

US Crypto Administration Taking Shape

According to our research, this move follows the replacement of the outgoing Chair, Senator Sherrod Brown (D-Ohio), by Senator Tim Scott. Brown is reported to have maintained a critical stand on the asset class, calling for stricter oversight. For his justification, he cites the persistent use of the asset for illicit activities and to evade sanctions. Meanwhile, this change could lead to a more friendlier regulation, as advocated by the crypto fraternity.

Some experts believe that this crypto subcommittee could include pro-crypto lawmakers, including Senator Bill Hagerty (R-Tenn.) and newly elected Senator Bernie Moreno (R-Ohio).

To round up the strategic crypto team, US President-elect Donald Trump has appointed former commissioner of the US Securities and Exchange Commission (SEC) Paul Atkins to chair the Agency, as we earlier mentioned in a report. Hedge fund manager Scott Bessent has also been handed the Treasury Secretary position, while venture capitalist David Sacks has been designated as the White House “crypto czar.”

Confirming the ongoing development, the head of legal and government affairs at TRM Labs, Ari Redbord, highlighted in a recent appearance at CNBC’s Squawk Box that the US could either maintain or overtake global advancement in digital assets with these key appointments.