The Senate Banking Committee, led by Republicans including Tim Scott (R-SC) and Cynthia Lummis (R-WY), released principles to guide crypto market legislation, focusing on regulatory clarity, innovation, and consumer safeguards. The principles aim to define digital asset status, streamline oversight, and implement targeted anti-money laundering measures. This follows momentum around the Digital Asset Market Clarity Act, which shifts oversight from the SEC to the CFTC. Meanwhile, Democrats like Sen. Adam Schiff (D-Calif.) introduced the COIN Act to prevent presidential crypto profiteering, contrasting with Trump-backed legislation. The debate unfolds as federal agencies, including the FHFA, explore crypto’s role in financial systems.
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Senate Pushes Crypto Market Framework for Clear Regulations
The Senate Banking Committee released a regulatory framework for digital assets, aiming to clarify distinctions between securities and commodities while avoiding the creation of a new crypto-specific agency. Key proposals include updated registration paths for compliant issuers, self-custody protections, and tailored exemptions for tokenized projects. Witnesses, including industry leaders and former regulators, stressed the urgency of clear rules to prevent fraud and maintain U.S. competitiveness. The framework also advocates for inter-agency coordination, anti-money laundering measures, and consumer safeguards like asset segregation. Lawmakers now face the task of drafting legislation, with jurisdiction split between the SEC and CFTC. The move follows bipartisan momentum, as seen in recent votes, but challenges remain in balancing innovation with oversight.
read moreUS Senators Push for Crypto Custody Rules with PROOF Act
The PROOF Act, reintroduced by US Senators Thom Tillis (R-NC) and John Hickenlooper (D-CO), aims to tighten regulations on digital asset custodians by prohibiting the co-mingling of customer and institutional funds and requiring monthly third-party Proof of Reserves (PoR) audits. Inspired by the FTX collapse, which revealed systemic failures like fund diversion and reserve shortfalls, the bill mandates transparency through public disclosures via the US Treasury. Non-compliance would result in civil penalties under a tiered enforcement system. The legislation seeks to standardize PoR practices, moving from voluntary attestations to mandatory, CPA-validated audits, ensuring greater trust in crypto custodians. Industry players like Chainlink have endorsed the bill as a critical step for transparency.
read moreTrump’s Crypto Reserve Proposal Faces Bipartisan Skepticism and Industry Concerns
President Trump’s proposal to create a US “strategic reserve” of digital assets, including Bitcoin and Ethereum, has sparked skepticism among lawmakers and industry supporters, who fear it undermines ongoing regulatory efforts. Critics, including Sen. Kirsten Gillibrand, argue that the plan could manipulate the market and complicate asset forfeiture processes. The announcement comes as Congress approaches potential bipartisan legislation on crypto regulation, raising concerns about the implications of the reserve on these discussions.
read moreLawmakers Push Back Against IRS Rule Impacting Cryptocurrency Innovation
U.S. lawmakers, led by Senator Ted Cruz and Representative Mike Carey, are pushing to overturn a Biden administration IRS rule that redefines decentralized finance participants as “brokers,” imposing strict reporting requirements. They argue this regulation threatens U.S. cryptocurrency innovation and could drive it overseas, calling it an overreach that complicates tax-filing processes. The resolution has gained support from various lawmakers and industry groups, emphasizing the need to balance regulation with technological advancement in the digital asset sector.
read moreCynthia Lummis Appointed Chair of New Senate Subcommittee on Digital Assets
Senator Cynthia Lummis has been appointed as the first chair of the new Senate Banking Subcommittee on Digital Assets, tasked with developing a regulatory framework for blockchain and cryptocurrency in the U.S. Lummis advocates for a national Bitcoin reserve to strengthen the dollar and emphasizes the need for bipartisan legislation on market structure and consumer protections. The subcommittee, which includes members from both parties, aims to ensure compliance among federal regulators and prevent overreach in digital asset regulation.
read moreTrump Administration Plans Crypto Subcommittee Led by Senator Lummis
The US Senate Banking Committee is set to establish a crypto subcommittee, with Senator Cynthia Lummis as the leading candidate for chair under the incoming Trump administration. This subcommittee will oversee digital asset regulations, potentially superseding conflicting rules from the SEC and CFTC. Meanwhile, Rostin Behnam is expected to step down as CFTC chair, with Summer Mersinger likely to succeed him, advocating for a more balanced regulatory approach.
read moreCynthia Lummis Appointed Chair of New Senate Crypto Subcommittee
Republican Senator Cynthia Lummis of Wyoming has been appointed to chair the newly formed crypto subcommittee of the US Senate Banking Committee, with a vote expected soon. Lummis, a proponent of cryptocurrency, recently introduced the Bitcoin Act of 2024, advocating for a Bitcoin strategic reserve. Other Republican members include Senators Bernie Moreno, Dave McCormick, Thom Tillis, and Bill Hagerty, while the participation of Democratic Senators remains uncertain, particularly with anti-crypto advocate Elizabeth Warren as the top Democrat on the committee.
read moreUS Senate Banking Committee Plans Crypto Subcommittee Ahead of Trump Inauguration
The US Senate Banking Committee is poised to establish its first crypto subcommittee, with Senator Cynthia Lummis as a leading candidate for chair, reflecting a pro-crypto stance as President-Elect Trump prepares to take office. CFTC Commissioner Summer Mersinger is also a top contender to lead the agency, succeeding Rostin Behnam, as Trump aims to enhance the US’s position in the crypto landscape. The developments come amid ongoing discussions about regulatory control and the future of digital assets in the Senate.
read moreSEC Approves Bitcoin ETFs Amid Mixed Reactions and Market Movements
The US Securities and Exchange Commission has approved the first set of spot Bitcoin ETFs, despite criticism from Senator Elizabeth Warren. However, Vanguard will not allow customers to purchase any, while Bitwise Asset Management will donate 10% of profits from its Bitcoin ETF to non-profits.Ethereum co-founder Vitalik Buterin suggested raising the Ethereum gas limit to improve scalability, and Ethereum’s value increased by over 10% following the SEC’s announcement. PayPal’s PYUSD stablecoin is leveraging DeFi for liquidity, and the CFTC has highlighted accountability concerns in DeFi.In technology, SlowMist revealed that Tornado Cash laundered over $500 million in crypto despite sanctions, and Polygon Labs unveiled the Libre Chain. The FOX Corporation and Polygon blockchain have launched ‘Verify’ for digital content authentication.In business, Circle has confidentially filed for an IPO, and Celsius intends to retrieve funds following bankruptcy. HAQQ has partnered with GoMeat, and the Digital Currency Group repaid a $700 million loan to Genesis. GameStop has closed its NFT marketplace.Binance Futures is promoting its USDC-margined perpetual trading pairs, and Hedera and Algorand have introduced a decentralized recovery protocol. Apple has removed the apps of nine major cryptocurrency exchanges from its App Store in India, and Senators J.D. Vance and Thom Tillis have requested a report from the SEC on a recent breach.
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