The shift from Democrat control to Republican control will have a dramatic impact on innovation in financial services. While the Democrat party has been firmly anti-Fintech innovation, Republicans have embraced tech improvements in financial services, and today is emblematic of the change as the Senate Banking Committee announces a new Subcommittee on Digital Assets, seeking to enable crypto innovation.
The Chairman of the Senate Banking Committee, Senator Tim Scott, has selected Senator Cynthia Lummis to lead the initiative. Lummis is well known for her support of digital assets.
Senator Lummis said she is humbled at being selected to lead the panel.
“Digital assets are the future, and if the United States wants to remain a global leader in financial innovation, Congress needs to urgently pass bipartisan legislation establishing a comprehensive legal framework for digital assets and that strengthens the US dollar with a strategic Bitcoin reserve.”
She noted she expects bipartisan legislation aimed at digital assets to be signed into law this year.
“Blockchain technology and cryptocurrency have the potential to democratize the financial world – and there’s no better champion for the industry than my friend Cynthia Lummis,” said Senator Scott, who predicted a common sense framework for innovation to emerge.
The Senate Banking Subcommittee on Digital Assets will focus on:
- Passing bipartisan digital asset legislation that promotes responsible innovation and protects consumers, including market structure, stablecoins and a strategic bitcoin reserve.
- Conducting robust oversight over Federal financial regulators to ensure those agencies are following the law, including by ensuring Operation Chokepoint 2.0 never happens again.
While nothing is a foregone conclusion in a deeply divided Congress, there is a high probability that legislation, supported by both parties, will emerge.
