Last week, an official announcement was issued by Senators Cynthia Lummis and Kyrsten Sinema regarding the launch of the US Senate Financial Innovation Caucus. Senators John Hickenlooper, Tim Scott, Marsha Blackburn, Mike Braun, and Bill Cassidy, also joined the Caucus in a show of bipartisan support for Fintech innovation. Senators Lummis and Sinema said their mission is to show how financial technologies can “make markets more inclusive, safe and prosperous for all Americans.”
Areas of Fintech innovation the group will address include Blockchain, digital assets, payments, CBDCs, AI/ML, and overall financial inclusion. The caucus is expected to serve as a space in the Senate to discuss domestic and global Fintech issues, as well as to author legislation and guide regulators.
Senator Lummis said the US is a leader in the global financial system but this is a privilege and not a right:
“It is also a huge, often-underappreciated benefit to every American. We need to work together to bring our financial system into the 21st century in order to maintain our leadership and ensure that future Americans can enjoy the same opportunity and prosperity that we experience today.”
Senator Sinema added that “boosting innovation in our financial system ensures the United States remains a global economic leader while expanding job opportunities in Arizona and across the country.”
In general, political divisions can be difficult to bridge and Democrats tend to lean towards more regulation – not less, while Republicans seek to embrace entrepreneurship recognizing excessive rules can crush creativity and innovation. Senator Sinema has distinguished herself as an independent thinker who is supportive of small businesses and Senator Lummis has emerged as a vocal advocate of blockchain technology. It is encouraging to see the two sides of the political aisle working together in an area that can benefit all consumers as well as businesses.
The two Senators say the caucus is timely for multiple reasons including the emerging digital asset sector including CBDCs [central bank digital currency]. The statement pointed to the fact that China has already launched a digital yuan – an area where the US has lagged.