The Senate Banking Committee has appointed Senator Cynthia Lummis (R-WY) as chair of the newly formed Senate Subcommittee on Digital Assets, marking a pivotal moment in the legislative approach to cryptocurrency regulation. The move signals Congress’s growing urgency to establish a legal framework for digital assets amid increasing global competition and regulatory uncertainty.
Lummis, a longtime advocate for Bitcoin and blockchain technology, emphasized the importance of bipartisan cooperation in shaping crypto policy.
“Digital assets are the future, and if the United States wants to remain a global leader in financial innovation, Congress needs to urgently pass bipartisan legislation,” Lummis said in an official statement.
She pledged to push for a comprehensive legal framework that includes market structure regulations, stablecoin oversight, and a strategic Bitcoin reserve to strengthen the U.S. dollar.
Legislative Priorities and Oversight
As chair of the subcommittee, Lummis will focus on two primary objectives: drafting bipartisan digital asset legislation and ensuring strict oversight of federal financial regulators. The subcommittee will work to prevent regulatory overreach, including what Lummis and her colleagues have labeled “Operation Chokepoint 2.0,” a perceived effort to limit access to banking services for crypto firms.
Senator Tim Scott (R-SC), chair of the Senate Banking Committee, praised Lummis’s leadership and commitment to the crypto industry.
“Blockchain technology and cryptocurrency have the potential to democratize the financial world – and there’s no better champion for the industry than my friend Cynthia Lummis,” Scott said.
He affirmed that the committee, in coordination with the Trump administration, aims to establish clear and practical regulations that encourage innovation within U.S. borders rather than pushing it overseas.
Challenges and Bipartisan Support
Despite Republican leadership, Lummis will need to secure Democratic support within the Senate Banking Committee to advance crypto-friendly policies. Notably, her longtime co-sponsor on digital asset legislation, Senator Kirsten Gillibrand (D-NY), does not serve on the committee. However, bipartisan momentum may build through cooperation with other lawmakers, such as Senator Bill Hagerty (R-TN), who has introduced the GENIUS Act to regulate stablecoins.
Ranking Member Ruben Gallego (D-AZ) will play a key role in shaping the subcommittee’s initiatives. While in the House, Gallego supported FIT21 and voted to repeal SAB 121, indicating a generally favorable stance toward digital assets. His cooperation could prove crucial in bridging party lines to craft effective legislation.
Key Testimonies and Regulatory Reform
The subcommittee’s upcoming hearing on February 26 will feature testimony from industry experts, including Jai Massari, co-founder and Chief Legal Officer of Lightspark, and Jonathan Jachym, Deputy General Counsel for Kraken Digital Asset Exchange. Their insights will address the Securities and Exchange Commission’s (SEC) approach to crypto regulation, particularly under former Chair Gary Gensler.
Austin Campbell, CEO of WSPN and an adjunct professor at NYU Stern School of Business, has been outspoken against past SEC policies. In a recent article, Campbell called for a shift in regulatory leadership, arguing that those responsible for what he described as restrictive enforcement measures should not be allowed to return to government roles. His position has gained traction among policymakers and industry leaders alike, with Massari endorsing his stance on social media.
The establishment of the Digital Asset Subcommittee reflects a broader shift in Washington toward crypto-friendly policies. With the Trump administration backing efforts to pass stablecoin and market structure legislation within the first 100 days of the new term, the subcommittee’s work could shape the future of digital asset regulation for years to come.
The February 26 hearing, set to take place at 2:30 p.m. ET in the Dirksen Senate Office Building, will provide further clarity on the committee’s direction and potential legislative outcomes. Industry stakeholders will be watching closely as Congress takes its next steps toward regulating the rapidly evolving crypto sector.
