The US Senate Banking Committee, led by Senator Tim Scott, is reportedly preparing to establish the first-ever cryptocurrency subcommittee. This new unit will be modeled after Patrick McHenry’s House Financial Services Committee in 2023. 

Cynthia Lummis, the republican Senator from Wyoming, is also reportedly set to chair this new crypto subcommittee. New members are expected to be selected through a committee vote soon. 

Another Major Win for US Crypto Regulations

This news comes as Trump’s official inauguration day is less than two weeks away. With his inauguration, Trump’s administration is likely to start the engine on several pro-crypto regulatory developments. 

Meanwhile, high-profile crypto leaders have donated to Trump’s inaugural committee. Circle, the second largest stablecoin issuer in the market, donated $1 million in USDC earlier today. 

Previously, Ripple also donated a staggering $5 million to the event, as other companies like Kraken, Robinhood, and Ondo Finance have also followed suit. 

It’s clear that crypto companies and leaders will have an effective say in the regulatory discussions under Trump’s government. 

The new crypto subcommittee will likely develop clear and consistent regulations to govern the industry, aiming to balance consumer protection with the promotion of innovation. 

“Senator Lummis is the perfect choice to chair Senate Banking’s digital asset subcommittee. Not only are she and her team deeply knowledgeable, they’re also pragmatic. And they’re already familiar with both the best and worst of the crypto industry. I’m confident under her leadership, we will achieve fit for purpose rules that don’t accelerate shenanigans, which are exactly the rules we need,” wrote Sheila Warren, CEO of the Crypto Council for Innovation. 

The subcommittee will also likely ensure that regulatory measures do not stifle technological advancements. It would potentially promote economic opportunity and financial inclusion. 

Senator Scott previously noted that “crypto has the potential to democratize the financial world,” and has shown strong continuous support for the industry. 

Is the US Bitcoin Reserves Dream Getting Closer?

Meanwhile, the appointment of Senator Lummis as the subcommittee chair is not surprising, given her extremely pro-crypto stance throughout the election campaign. Lummis has been one of the strongest advocates for strategic Bitcoin reserves. 

She even recently proposed selling a portion of the Federal Reserve’s gold to purchase more Bitcoin. Trump has also sought to establish national BItcoin reserves during his election campaign. However, it’s a congressional process that might require some strong effort to pass.

Earlier today, the US government announced that it will be selling its $6.7 billion worth of Bitcoin seized from the Silk Road. It seems like President Biden is attempting to make Trump’s decision for Bitcoin reserves as difficult as possible.

However, pro-crypto regulatory developments are in full flow ahead of the new government’s inauguration. Trump has already announced David Sacks as the first-ever Whitehouse Crypto Czar. 

Most importantly, Gary Gensler is set to resign on inauguration day, leaving the SEC chair for Paul Atkins. These developments, along with the new subcommittee announcement, paint a very positive picture for the US crypto industry in 2025.