Senate Banking Committee Announces First-Ever Cryptocurrency Subcommittee: Report

The U.S. Senate Banking Committee, led by Chairman Tim Scott, is reportedly planning to establish its first subcommittee dedicated to cryptocurrency.

This initiative marks an important milestone in the Senate’s approach to regulating the digital assets industry.

Cynthia Lummis Selected as Chair

Fox Business reporter Eleanor Terret shared the development in a January 10 post on X, noting that Senator Cynthia Lummis has been chosen to head the subcommittee. However, her appointment remains subject to approval in a vote scheduled for the near future.

According to an earlier report, the establishment of the initiative is one of Scott’s first priorities as chairman of the Senate Banking Committee. This body plays a critical role in supervising major financial regulators, including the Securities and Exchange Commission (SEC) and the Federal Deposit Insurance Corporation (FDIC).

The South Carolina lawmaker plans to structure the new entity based on a similar crypto-focused subcommittee established by Patrick McHenry in 2023 under the House Financial Services Committee.

In 2024, the House passed an important crypto bill known as the Financial Innovation and Technology for the 21st Century Act (FIT21), developed by its crypto branch. This legislation aims to clarify the regulatory responsibilities of various agencies overseeing the crypto industry.

Congressman French Hill, one of the legislation’s co-authors, previously highlighted its strict consumer protections, including a prohibition on the commingling of customer funds, which he believes will prevent collapses like that of FTX.

Meanwhile, Hill was also recently appointed as the new chair of the House Financial Services Committee, succeeding McHenry.

Members of the Committee

According to an internal memo issued by Scott and reviewed by FOX Business, Republican members that have been selected for the new division include freshman senators Bernie Moreno of Ohio and Dave McCormick of Pennsylvania, as well as Thom Tillis of North Carolina and Bill Hagerty of Tennessee. All are described as being strong crypto advocates.

It remains unclear which Democratic leaders will join the new outfit. However, Elizabeth Warren, a prominent crypto critic, is the party’s most senior member on the Senate Banking Committee.

This development comes just days after Republicans officially assumed control of the Senate, solidifying their legislative majority. With President-elect Donald Trump’s inauguration set for January 20, the party will hold unified control of both Congress and the White House.

The formation of the subcommittee is viewed as a significant step toward fulfilling the GOP’s commitment to advancing crypto-related legislation, aligning with Trump’s promise to position the United States as a global leader in the digital asset industry.