Blockchain Legal Resource

Under Chair Tim Scott (R-SC), the Senate Committee on Banking, Housing and Urban Affairs has announced several policy objectives favorable to the digital asset industry. We expect the Committee to take a more favorable view of the industry during the next Congress than in years past.

In announcing the Banking Committee’s priorities for the next Congress, Chair Scott noted that will be a key focus.

Under Chair Gensler, the SEC refused to provide clarity to the cryptocurrency industry, which has forced projects overseas. Moving forward, the committee will work to build a regulatory framework that establishes a tailored pathway for the trading and custody of digital assets that will promote consumer choice, education, and protection and ensure compliance with any appropriate Bank Secrecy Act requirements. The committee will also foster an open-minded environment for new innovative financial technologies and digital asset products, like stablecoins, that promote financial inclusivity.

To that end, the Committee announced the formation of the first ever Subcommittee on Digital Assets, to be chaired by Senator Cynthia Lummis (R-WY), an outspoken supporter of cryptocurrency innovation. The Subcommittee’s jurisdiction covers a wide range of issues, including:

Digital assets, including but not limited to cryptocurrencies and stablecoins; activities of digital asset issuers, trading and lending platforms, custody providers, and other intermediaries, when such activities are related to digital assets; regulatory activities of the Department of Treasury, the Federal Reserve System, OCC, FDIC, NCUA, SEC, to the extent they directly or indirectly exercise supervisory or regulatory authority over digital assets and digital asset intermediaries; and financial literacy in digital assets.

Chairman Scott also issued a press release trumpeting President Trump’s executive order on digital assets. Further, the Committee announced a hearing on February 5 to discuss possible “debanking” of certain industries, including digital assets.