Sen. Tim Scott Wants to Put Crypto in the Senate Spotlight With New Subcommittee
Senator Tim Scott proposes a new subcommittee focused on digital assets if he becomes chair of the U.S. Senate Banking Committee. | Credit: Chip Somodevilla/Getty Images
Key Takeaways
- If he becomes chair of the US Senate Banking Committee, Sen. Scott could propose a new subcommittee focused on digital assets.
- Despite internal opposition from Dems, optimism remains for passing cryptocurrency legislation within the year.
- Efforts to regulate crypto continue across both the Senate and House, with multiple bills awaiting approval.
In a bid to shine a brighter light on the rapidly evolving digital asset industry, Republican Senator Tim Scott is pushing for the creation of a new subcommittee dedicated to crypto, contingent on his appointment as chair of the influential US Senate Banking Committee.
This move mirrors the House Financial Services Committee’s efforts, which has already established its own digital asset-focused panel that has hosted numerous hearings on cryptocurrency-related issues, sparking a sense of urgency for the Senate to follow suit.
Senator Scott Proposes Crypto Subcommittee
Known for his positive stance towards the cryptocurrency industry, Scott is the leading Republican on the committee, chaired by Democrat Senator Sherrod Brown of Ohio. If the Republicans gain a majority in the Senate in the forthcoming elections, Scott is potentially positioned to lead the committee next year.
During the recent Wyoming Blockchain Symposium , Scott stated:
“Wouldn’t it be kind of cool if we had a subcommittee on the banking committee that focuses on the industry so that we bring more light to the conversation, more hearings on the industry, so that we get things done faster.”
Be it as it may, Senator Cynthia Lummis pointed out during a panel discussion with Senator Scott that there are significant “headwinds” within the Senate Banking Committee, particularly from its current chair, Senator Sherrod Brown and Senator Elizabeth Warren.
She commented:
“They’ve been extremely influential with their colleagues on the Democrat side of the aisle, so we’ve hit the wall on the banking committee.”
Despite facing challenges within the Senate Banking Committee, Sen. Lummis remains optimistic about possibly passing crypto legislation this year.
She noted that any prospective bill aimed at regulating cryptocurrencies would likely need to originate from the Senate Agriculture Committee, given its oversight of the US Commodity Futures Trading Commission.
Lummis hopes that the committee will approve such a bill post-election.
Multiple Crypto Regulation Bills Underway, Awaiting Biden’s Approval
In Washington, lawmakers are crafting several bills to regulate the cryptocurrency sector, though none have reached President Joe Biden’s desk yet.
Sen. Lummis and Kirsten Gillibrand introduced legislation in April that proposes banning algorithmic stablecoins while establishing a regulatory framework for other stablecoins.
Meanwhile, Senate Agriculture Committee Chair Debbie Stabenow is also spearheading a bill to oversee the crypto industry, with discussions expected to resume in September.
In the House, a Republican-led bill was passed in May that designates new authority to the CFTC over “digital commodities” and confirms the SEC’s oversight over digital assets tied to investment contracts. Additionally, efforts are ongoing to craft a bill specifically to regulate stablecoins.
Senate Majority Leader Chuck Schumer expressed his commitment during a Crypto4Harris town hall last week, stating his intention to pass crypto regulation legislation by the end of the year.
Lummis Highlights 2024 as Key Election for GOP
The Harris campaign has started to unveil policy initiatives but has not yet introduced specific plans for the cryptocurrency sector.
Brian Nelson, a campaign advisor and former senior Treasury official, mentioned that Harris is interested in expanding the crypto industry but did not provide detailed proposals.
Sen. Lummis noted that this approach starkly contrasts with the Republican party’s stance, pointing out that former President Trump’s platform included specific proposals regarding digital assets.
Looking ahead to the 2024 elections, Lummis remarked that this election cycle presents the most favorable conditions for Republicans in the coming years, given the number of Senate seats available in Republican-leaning states. She highlighted that Republicans will face more challenges than Democrats in the 2026 and 2028 elections.
Lummis emphasized the significance of the current political long-view:
“This is the best scenario for Republicans. With a Republican president and control of both the House and Senate for two years, we could achieve monumental changes. We could lead in this industry and others, driving significant positive shifts that encourage innovation. Missing this chance means we won’t see such an opportunity again for a long time.”
Can Bitcoin Solve the $35 Trillion US Debt Crisis? Senator Lummis and Michael Saylor Weigh In
