Senate Banking Committee Will Form Its First Crypto Oversight Subcommittee

The U.S. Senate Banking Committee, led by Senator Tim Scott, is ready to introduce a cryptocurrency subcommittee that will significantly heighten regulatory discussions and oversight of digital assets.

As reported by Fox News, this replicates the move made in the House to establish a parallel subcommittee in 2023 and reflects the heightened legislative interest in the crypto sector.

The new subcommittee will be headed by Wyoming Senator Cynthia Lummis, an avid cryptocurrency supporter, pending a committee vote next Thursday.

Lummis has been one of the most outspoken supporters of Bitcoin, referring to the digital asset as “freedom money” time and again. She has championed the asset’s role in hedging against inflation and government overreach. Her nomination, along with that of subcommittee members from both the Republican and Democratic parties, will be voted on during the upcoming vote.

Senator Lummis has also introduced proposals such as establishing a strategic Bitcoin reserve, among others and providing a friendly regulatory framework for the crypto industry. Her leadership will likely shape the Senate’s approach to digital assets, offering a more defined strategy for federal crypto legislation.

The creation of the subcommittee comes weeks after the Senate Banking Committee had scheduled a vote to reappoint SEC Commissioner Caroline Crenshaw. The Democratic roster for the new subcommittee remains unknown, although it includes well-known crypto critic Senator Elizabeth Warren as a ranking member.

That also comes on the heels of a recent vote in the House to pass the FIT21 bill that would give the Commodity Futures Trading Commission broader authority to regulate cryptocurrencies. The bill, created by the House Financial Services crypto subcommittee, is still pending in the Senate.