Senator Tim Scott, the Republican ranking member on the United States Senate Banking Committee, reportedly plans to develop “a bipartisan regulatory framework” for cryptocurrencies.
According to a Feb. 2 report from Politico, Scott included the crypto framework as one of his priorities for the 118th Congress. He reportedly was skeptical of some aspects of crypto, alluding to the collapse of exchanges like FTX — “high-profile failures resulted in lost consumer assets” — and potential uses for illicit finance.
Scott recently took over the ranking member position from former Senator Pat Toomey, who served out his term without seeking reelection. Toomey supported many legislative efforts encouraging innovation in the digital asset space, while Committee Chair Sherrod Brown called on Treasury Secretary Janet Yellen to work with financial regulators and lawmakers on comprehensive crypto legislation.
The Senate Banking Committee held a hearing in December aimed at exploring the collapse of FTX, with the possibility of continuing its investigation in a new session of Congress in 2023. The House Financial Services Committee, under the leadership of Representative Patrick McHenry, may likewise hold another hearing on FTX.
With the Republican Party taking control of the House of Representatives, McHenry has the authority to set the legislative agenda for the financial committee. He reportedly plans to create a new subcommittee focused on digital issues, given the “big hole” in previous committee structures.