US Senate Banking Committee prioritises crypto regulatory framework

Republican Senator Tim Scott, newly appointed chair of the US Senate Banking Committee, has announced that establishing a regulatory framework for digital assets will be a key priority in the 119th Congress.

In a statement released on January 15, Scott emphasised the committee's focus on policies aimed at financial inclusion and creating opportunities within the U.S. economy.

The committee's agenda includes various priorities such as affordable housing, economic national security, oversight, and digital assets.

Scott criticised the previous leadership under SEC Chair Gary Gensler, stating that the lack of clarity provided to the cryptocurrency industry has driven many projects overseas.

He pledged that the committee would work towards building a regulatory framework that offers a tailored pathway for the trading and custody of digital assets.

The South Carolina senator also indicated that the committee would foster an “open-minded environment” for discussions surrounding stablecoins and related digital asset products.

However, he may encounter resistance from committee ranking member Elizabeth Warren, who has previously expressed skepticism about many crypto policies during her tenure in the 118th Congress.

This shift in leadership comes after former Ohio Senator Sherrod Brown lost his reelection bid against Republican Bernie Moreno, allowing Republicans to gain majority control of the Senate and elect Scott as chair.

The cryptocurrency-backed political action committee Fairshake invested over $40 million to support Moreno's campaign, reflecting significant financial interest in shaping crypto policy.

Colin McLaren from the Cedar Innovation Foundation stated that his organisation intends to collaborate closely with Scott to advance a crypto market structure bill.

Cedar has partnered with the Blockchain Association and Stand With Crypto, sharing a spokesperson with Fairshake.

Under Senator Brown's leadership, the Banking Committee had previously examined stablecoin legislation and held hearings on various digital asset issues, including SEC enforcement actions against crypto firms.

As of January 15, only one event is scheduled on the Banking Committee’s calendar for 2025: a nomination consideration for the secretary of the US Department of Housing and Urban Development.