Key takeaways
- Senator Cynthia Lummis was appointed chair of the newly formed Senate Banking Subcommittee on Digital Assets.
- The subcommittee aims to advance bipartisan legislation for a comprehensive legal framework for digital assets.
Senator Cynthia Lummis, a noted Bitcoin advocate, has been named chair of the Senate Banking Subcommittee on Digital Assets after an earlier vote on Thursday, according to a new press release.
The subcommittee, a newly created body under the Senate Banking Committee after Republicans gained control of the Senate, is the first-ever watchdog to focus on digital assets. Senator Tim Scott, who 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 U.S. wants to remain a global leader in financial innovation, Congress must immediately pass bipartisan legislation that establishes a comprehensive legal framework for digital assets and that strengthens the U.S. dollar with a strategic bitcoin reserve.” Lummis said. “I am humbled that my colleagues have trusted me to chair this historic subcommittee, and I look forward to bringing bipartisan legislation to President Trump’s desk this year that secures our economic future.”
The new Senate Subcommittee on Digital Assets intends to expand on the initiatives of its predecessor in the House, which created FIT21 Legislation. This bill, was adopted 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 earlier met resistance from the Biden administration. The former president issued an administration policy statement opposing the bill, noting that it “lacks adequate protections for consumers and investors.”
The formation of the subcommittee is consistent with the Republican Party’s focus on crypto legislation and supports President Donald Trump’s campaign promise to position America as a global crypto hub.
The Senate Banking Subcommittee on Digital Assets has two main priorities: crafting bipartisan digital asset legislation and closely monitoring federal financial regulators.
On the legislative front, the goal is to develop laws that encourage responsible innovation in the digital asset space while protecting consumers. This includes addressing issues such as market structure, stablecoins and even exploring the idea of a strategic Bitcoin reserve.
In November 2024, Lummis uncovered the Increasing Innovation, Technology and Competitiveness through Optimized Investment Nationwide (BITCOIN) Act, a proposed bill that would allow the federal government to purchase 1 million Bitcoins within five years. This acquisition would roughly equal 5% of the entire supply of Bitcoin.
The newly formed subcommittee will also actively monitor the operation of federal financial regulators, ensure compliance and prevent anything like a repeat of “Operation Chokepoint 2.0.”
