As reported by FOX News’ Eleanor Terret, Senator Tim Scott has outlined his priorities for the 119th Congress, which include developing a regulatory framework for digital assets. The newly appointed chairman of the Senate Banking Committee said Congress will provide an “open-minded” environment for innovative financial technologies.
In a January 15 announcement, the committee outlined its focus areas, including affordable housing, economic national security, oversight, and addressing digital asset regulation.
🚨NEW: @SenatorTimScott has just released his list of priorities for the 119th Congress which includes developing a framework for digital assets. pic.twitter.com/Tclu5ASQPL
— Eleanor Terrett (@EleanorTerrett) January 15, 2025
“Under Chair Gensler, the SEC refused to provide clarity to the cryptocurrency industry, which has forced projects overseas,” Senator Scott stated. “The committee will work to build a regulatory framework that establishes a tailored pathway for the trading and custody of digital assets.“
Scott picked up his new role after former Ohio Senator Sherrod Brown, who chaired the Banking Committee since 2021, lost his reelection bid to Republican Bernie Moreno. The GOP’s majority control of the Senate enables him to see through President-elect Donald Trump’s pro-crypto growth regulatory legislation.
Financial regulators halted the crypto industry’s growth
The Securities and Exchange Commission (SEC) continues to face criticism for what many in the industry perceive as a hostile approach to cryptocurrency regulation. Leading crypto exchange Coinbase filed a lawsuit against the SEC last year, challenging the agency’s ambiguous “come-in-and-register” approach.
Critics argue that SEC policies under Chair Gary Gensler have stifled innovation and driven crypto projects offshore. With Gensler set to leave the seat, the Banking Committee plans to establish clearer guidelines for the digital asset sector in the US to grow.
In addition to creating a digital currency framework, Chairman Scott plans to address what he called the “unduly burdensome and arbitrary financial regulations” imposed under the Biden administration.
“I look forward to working with the Trump administration and my colleagues on the committee to find consensus and advance solutions that improve financial inclusion and create opportunity across the country,” the US Senator stressed.
Pro-crypto sentiment takes over US Congress
According to the nonprofit group Stand With Crypto, the 2024 elections saw 250 pro-crypto members of Congress and 16 senators assume office. President-elect Trump supported the elevation of lawmakers with favorable views on digital assets to key congressional committees.
Among the crypto-friendly leaders is Representative Bryan Steil, who will chair the House Financial Committee’s Subcommittee on Digital Assets, Financial Technology, and Artificial Intelligence. GOP Majority Whip Tom Emmer, a vocal critic of Gensler, will serve as vice chair.
“With President Trump in the White House and Gary Gensler confined to the waste bin of Washington, we have an excellent opportunity to ensure that the future of digital assets is guided by Americans, with American values,” Emmer posted on X.
Trump nominee Paul Atkins, a crypto-friendly former SEC commissioner, is expected to end the crypto crackdown initiated under Gary Gensler. However, it is unclear how soon the Senate will greenlight his appointment.
Once the new administration takes office, clarity is expected on whether the SEC or the Commodity Futures Trading Commission will oversee specific parts of the crypto industry. Lawmakers will also likely be tasked with addressing stablecoin regulation and providing guidelines for their issuance.
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