Trump is Set to Establish the First-ever Senate Crypto Subcommittee

by

Reportedly, Senator Tim Scott’s US Senate Banking Committee plans to create a pioneering committee focused on cryptocurrencies. This forthcoming panel is intended to mirror the structure of Patrick McHenry’s House Financial Services Committee from 2023.

According to reports, it’s anticipated that Cynthia Lummis, the Republican senator representing Wyoming, will lead a newly established cryptocurrency subcommittee. The selection of new members is expected to occur via a committee vote in the near future.

Another Major Win for US Crypto Regulations

This news arises since Trump’s official inauguration day is just about two weeks off. Upon his inauguration, it seems probable that Trump’s administration will kick-start various regulatory advancements favorable to cryptocurrency.

Currently, notable figures within the cryptocurrency sector have contributed to Donald Trump’s inauguration fund. Specifically, Circle – a key player in the stablecoin market – recently donated one million US Dollars worth of USDC.

Back in the day, just like many others in the crypto sphere, I was thrilled to learn that Ripple had generously contributed a whopping $5 million to this cause. Notably, big names such as Kraken, Robinhood, and Ondo Finance have joined them in making similar donations.

It’s evident that during Trump’s administration, crypto firms and their influencers will carry significant weight in shaping regulatory conversations.

It’s very likely that the freshly formed cryptocurrency committee will establish clear-cut rules to regulate the sector, striving for a harmonious blend of safeguarding consumers while fostering technological advancements.

According to Sheila Warren, CEO of the Crypto Council for Innovation, Senator Lummis is an ideal candidate to lead the Senate Banking’s digital asset subcommittee. This is because she and her team possess extensive knowledge on the subject matter, are practical in their approach, and have a comprehensive understanding of both the advantages and pitfalls within the cryptocurrency industry. Warren expresses confidence that under Senator Lummis’ guidance, we will establish suitable regulations that curb unscrupulous activities without fostering them. These are the types of rules we need to ensure a well-regulated digital asset landscape.

The subcommittee is expected to make sure that any regulations they implement don’t hinder the progress of new technologies. They might even facilitate economic growth and financial access for all.

Senator Scott earlier expressed that “cryptocurrencies could revolutionize the global financial system,” and has consistently demonstrated a robust backing towards this sector.

Is the US Bitcoin Reserves Dream Getting Closer?

During the election, Senator Lummis made it clear she’s very supportive of cryptocurrencies. It’s no surprise, then, that she was appointed as subcommittee chair, given this stance. In fact, she’s been a vocal advocate for establishing strategic Bitcoin reserves.

She recently suggested selling a part of the Federal Reserve’s gold to buy more Bitcoin. During his campaign, Trump also aimed to create Bitcoin reserves at a national level, but this might need significant effort in Congress to pass.

More recently, it has been announced that the US government will be selling its $6.7 billion worth of Bitcoin obtained from Silk Road seizures. It appears as though President Biden is intentionally making Trump’s plan for Bitcoin reserves challenging.

Meanwhile, there have been positive regulatory advancements in the crypto space ahead of the new administration’s inauguration. Already, Trump has appointed David Sacks as the first-ever White House Crypto Advisor.

Primarily, it’s expected that Gary Gensler will step down as SEC chairman on Inauguration Day, handing over his role to Paul Atkins. These events, coupled with the introduction of a new subcommittee, indicate a promising outlook for the U.S. cryptocurrency sector in 2025.

Read More

2025-01-10 03:17