Nikolas Sargeant
The US Senate Banking Committee has formally established its first Crypto Subcommittee, a move aimed at shaping digital asset legislation. Wyoming Senator Cynthia Lummis, a vocal cryptocurrency advocate, is expected to chair the subcommittee. The formation aligns with the Republican-led Congress’s push to roll back restrictive crypto policies enacted during the Biden administration. This new initiative mirrors a similar move by the House Financial Services Committee in 2023, which sought to create a regulatory framework for digital assets.
Shifting Political Landscape in Crypto Regulation
The creation of the Crypto Subcommittee is part of broader shifts within US politics regarding cryptocurrency regulation. After a win from a crypto advocate in Ohio, and Republicans now controlling both the House and the Senate, they are focused on reversing the aggressive regulatory stance taken by the Biden administration, which has seen a series of crackdowns on crypto firms from 2021 to 2024. The move also comes just weeks before the inauguration of President Donald Trump, who is expected to influence crypto policies further, signaling a potential pivot toward more crypto-friendly regulations in the coming years.
