Senate Banking Committee to Develop Bipartisan Regulatory Framework for Cryptocurrencies

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

In a piece that was published on the 2nd of February by Politico, it was said that Scott has prioritised the creation of a cryptographic framework as one of his primary objectives for the 118th Congress. Reportedly, he had some reservations about certain aspects of cryptocurrency, citing the failure of exchanges such as FTX — “high-profile failures resulting in lost client money” — as well as the possibility that it may be used for illegal financing. He also cited the possibility that it may be used for illegal financing.

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

The Senate Banking Committee held a hearing in December with the purpose of reviewing the failure of FTX, which had occurred earlier in the month. When a new session of Congress starts in 2023, there is a possibility that the Committee may continue its investigation as part of that session. The House Financial Services Committee, which is now led by Representative Patrick McHenry and has the ability to hold another hearing on FTX, may also hold such a hearing at some point in the near future.

As a direct consequence of the Republican Party’s win in the House of Representatives, McHenry now has the authority to choose which topics need to be prioritised on the legislative agenda for the finance committee. It is believed that he aims to form a new subcommittee that would be focused on digital problems. This would be in response to the “vast hole” that reportedly existed in the existing committee structures.