Senate to Form Crypto Oversight Subcommittee with Sen. Lummis as Chair: Report

The Senate Banking Committee is gearing up to announce its first subcommittee dedicated to digital assets, Punchbowl News reported on Thursday.

This development follows the Republican takeover of the US Senate last week, after the Nov. 2024 elections.

With the Republican majority now controlling both the Senate and the House, Trump will begin his second term with a unified government. As a result, the GOP’s control of both chambers creates a clearer path for passing crypto-friendly legislation.

Building on earlier efforts, the subcommittee will likely have a focus on stablecoins. It aims to create a regulatory framework that supports the industry’s growth while managing potential risks.

Sen. Tim Scott Prioritizes Crypto Subcommittee, Taps Cynthia Lummis for Leadership Role

Meanwhile, Fox Business reported that Sen. Tim Scott of South Carolina, now leading the Senate Banking Committee, has made forming a crypto subcommittee one of his top priorities. As head of the committee, Scott oversees key financial regulators, including the Securities and Exchange Commission and the Federal Deposit Insurance Corporation (FDIC).

🚨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

Scott plans to build on the success of the crypto subcommittee launched in the House in 2023 by former Congressman Patrick McHenry of North Carolina. To achieve this, he has reportedly tapped pro-crypto Wyoming Republican Senator Cynthia Lummis to head the subcommittee. Her appointment is pending an approval vote in the coming days.

Under McHenry’s leadership, a key accomplishment was advancing the Financial Innovation and Technology for the 21st Century Act (FIT21) in the House. This bill sought to clarify the regulatory framework for digital assets by determining whether they should be classified as securities or commodities. It aimed to settle jurisdictional conflicts by clearly defining the oversight responsibilities of the SEC and CFTC in the crypto space, a long-debated issue.

Crypto-Backed Senators Among Provisional Picks for New Subcommittee

FOX reported that the provisional Republican members chosen for the subcommittee include newly elected Senators Bernie Moreno from Ohio and Dave McCormick from Pennsylvania, along with Thom Tillis from North Carolina and Bill Hagerty from Tennessee.

In the 2024 election, the crypto industry provided financial support to Moreno and McCormick because of their pro-crypto views. Moreno received over $40m from pro-crypto super PACs, helping him defeat Sherrod Brown, an eighteen-year incumbent, to win the Senate seat.