Senate Banking Committee to Develop Bipartisan Regulatory Framework for Cryptocurrencies

Recent reports indicate that United States Republican Senator Tim Scott, who serves as a ranking member of the Senate Banking Committee, aims to establish a “bipartisan regulatory framework” for virtual currencies. Senator Scott is a ranking member of the Senate Banking Committee.

In an article published on February 2nd by Politico, it says that Scott prioritized creating a cryptographic framework as one of his top goals for the 118th Congress. Reportedly, he has some reservations about certain aspects of cryptocurrencies, citing the failure of exchanges like FTX — “a high-profile failure resulting in loss of client money” — as well as the possibility that it could be used for illegal financing. He also mentioned the possibility that it could be used for illegal financing.

Recent events resulted in Scott being promoted to the rank member position, which was originally held by the late Senator Pat Toomey. Toomey completed the remainder of his term but did not seek re-election the following year. Toomey lent his support to a number of legislative initiatives aimed at driving innovation in the digital asset sector, and Sherrod Brown, chair of the committee, urged Secretary of the Treasury Janet Yellen to collaborate with financial regulators and legislators on comprehensive cryptocurrency legislation. Toomey lends his support to a number of legislative initiatives aimed at driving innovation in the digital asset sector.

The Senate Banking Committee held a hearing in December with the aim of reviewing the FTX fiasco that occurred earlier in the month. As a new session of Congress begins in 2023, it is possible the Committee may continue its investigations as part of that session. The House Financial Services Committee, which is now chaired by Representative Patrick McHenry and has the ability to hold another session at FTX, may also hold such a hearing in the near future.

As a direct consequence of the Republican victory in the House, McHenry now has the power to choose which topics need to be prioritized on the finance committee’s legislative agenda. It is believed that he aims to form a new subcommittee that will focus on digital issues. This was in response to a “big hole” that reportedly existed in the existing committee structure.