Both Representatives US Will Have Their Own Committees on Digital Assets
Both the US Senate and the US House of Representatives are preparing to establish their own committees on digital asset policy, reflecting a clear shift in their legal stance under Trump.
The US House of Representatives appoints new leader for its subcommittee on digital currencies
The US House of Representatives announced on January 9, 2025 that it has appointed Representative Bryan Steil of Wisconsin to lead the Subcommittee on Digital Assets, Financial Technology, and Artificial Intelligence. This is a group that oversees regulatory policies on emerging technology sectors in the US, under the House Financial Services Committee.
The decision was made by French Hill, the new chairman of the House Financial Services Committee, who previously led the main digital asset advocacy group in the US Congress. Mr. Hill said:
“We will plan appropriate policies for banks, form a clear legal framework for digital assets to protect investors and consumers, but still ensure that it does not hinder development in the United States, as well as how to regulate agencies to properly exercise their assigned powers without additional political motivations, which have been discovered under the Biden-Harris administration.”
Under Mr. Hill’s leadership, the Subcommittee on Digital Assets has submitted many draft bills on crypto management, as well as held hearings with leaders of major US crypto companies to better understand the industry and the needs of related units. The most important law passed during this time was the Financial Innovation and Technology for the 21st Century (FIT21) Act, which laid the initial legal foundations for crypto and stablecoin management in the United States, but there are still many shortcomings that have not been properly resolved.
Meanwhile, the new subcommittee leader, Mr. Bryan Steil, is known for his criticism of the US Securities and Exchange Commission's (SEC) approach to crypto, claiming that the SEC intentionally puts US investors in danger by not issuing specific regulations on cryptocurrencies.
As reported, both SEC Chairman Gary Gensler and CFTC Chairman Rostin Behnam announced their resignations on January 20, 2025, the time Donald Trump began his term as US President. These two officials have been the focus of criticism from US lawmakers in recent years for their continuous actions to suppress cryptocurrency companies in the US.
US Senate to establish a committee on crypto assets
According to FOX Business, the US Senate Banking Committee is about to establish a subcommittee on digital assets, replicating the existing model in the House of Representatives.
Specifically, Senator Cynthia Lummis is expected to become the leader of this new subcommittee. Ms. Lummis can be considered one of the earliest and most enthusiastic crypto supporters, continuously standing up to defend the development benefits of digital currencies under the Biden administration, and then personally drafting a bill to establish a strategic Bitcoin reserve fund for the US after the call of Mr. Donald Trump.
However, the Senate Banking Committee will need to officially vote on this issue, as well as approve personnel for the subcommittee.
Previously, the new Chairman of the Banking Committee, Senator Tim Scott of South Carolina, affirmed his determination to establish a dedicated task force on digital currency policy.
Expectations for crypto legal changes under Trump
With the Republican Party's overwhelming victory in the recent election, with both the presidency and the majority of seats in the Senate and House of Representatives in the hands of this party, it can be seen that the open stance towards crypto will be promoted by the Republican Party in the coming time, in complete contrast to the Democratic administration of Mr. Biden with its policy of suppressing crypto in the period of 2021 - 2024. Mr. Donald Trump has made many moves to fulfill his commitment to revive the crypto industry that was made during the election campaign, with notable actions including:
- Meeting with CEOs of major crypto companies and expressing his intention to establish a crypto advisory council including representatives of these companies.
- Replacing SEC Chairman Gary Gensler with former SEC Commissioner Paul Atkins, who is running a law firm whose clients are crypto companies.
- Appointed David Sacks, a hedge fund manager with radical views on crypto, as "White House Crypto and AI Policy Advisor",
- Announced a list of cabinet nominees with pro-crypto views, including Scott Bessent as Treasury Secretary; Howard Lutnick as Commerce Secretary; Robert F. Kennedy Jr. as Health and Human Services Secretary; and Elon Musk as Secretary of Government Efficiency (DOGE).
- Expressed his intention to give more regulatory authority to the US Commodity Futures Trading Commission (CFTC), implying that cryptocurrencies are not securities and therefore subject to SEC oversight.
- Opened the possibility of establishing a US strategic Bitcoin reserve, using the 198,109 BTC ($19.5 billion) currently seized by the Department of Justice as evidence from criminal activities. Mr. Trump previously made statements affirming that the US should keep these Bitcoins because they can help the US reduce the national debt ratio.
