The Senate Banking Committee, led by Chairman Tim Scott, is planning to create its first subcommittee dedicated to cryptocurrencies, sources say.

The initiative marks a major milestone in the Senate’s approach to regulating the digital asset industry.

Cynthia Lummis Selected as Chair

Fox Business reporter Eleanor Terret shared the development in a social media post, noting that Senator Cynthia Lummis has been selected to chair the subcommittee. However, her appointment must still be approved in a vote scheduled for the near future.

According to an earlier report , the initiative is one of Scott’s first priorities as chairman of the Senate Banking Committee. The body plays a major role in overseeing major financial regulators, including the Securities and Exchange Commission (SEC) and the Federal Deposit Insurance Corporation (FDIC).

The South Carolina lawmaker plans to structure the new organization based on a similar cryptocurrency subcommittee created by Patrick McHenry in 2023 under the House Financial Services Committee.

In 2024, the House passed a major cryptocurrency bill known as the Financial Innovation and Technology for the 21st Century (FIT21) Act, drafted by its crypto division. The bill aims to clarify the regulatory responsibilities of the various agencies overseeing the crypto industry.

Congressman French Hill, one of the bill’s co-sponsors, has previously emphasized its strong consumer protections, including a ban on the commingling of customer funds, which he believes will prevent crashes like the FTX meltdown.

Meanwhile, Hill was recently named the new chairman of the House Financial Services Committee, replacing McHenry.

According to an internal memo released by Scott and reviewed by FOX Business, the Republican members selected for the new subcommittee include freshmen Sens. Bernie Moreno of Ohio and Dave McCormick of Pennsylvania, as well as Thom Tillis of North Carolina and Bill Hagerty of Tennessee. All are described as ardent supporters of cryptocurrency.

It is unclear which Democratic leaders will be on the new panel. However, Elizabeth Warren, a prominent critic of cryptocurrency, is the party’s most senior member on the Senate Banking Committee.

The creation of the subcommittee is seen as a significant step toward fulfilling the GOP’s commitment to advancing cryptocurrency-related legislation, in line with Trump’s pledge to position the United States as a global leader in the digital asset industry.

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