In a recent interview with CNBC, Republican Senator Cynthia Lummis expressed optimism that a shift in U.S. Senate control from Democrats to Republicans would be favorable for digital assets. She highlighted the importance of the Senate Banking Committee. It is currently led by Democrat Sen. Sherrod Brown of Ohio, a vocal critic of the cryptocurrency industry. Brown has expressed his worries about crypto platforms that do not follow basic safeguards like ‘know your customer’ (KYC) rules that fight money laundering.
Tim Scott Poised to Chair Banking Committee if Senate Flips Republican
If the Senate were to switch to Republican control, South Carolina’s Tim Scott would be next in line to chair the Banking Committee. To support this, she pointed out that Scott has expressed a better sentiment towards cryptocurrencies and has even floated the idea of forming a subcommittee on digital assets. She also shared her opinion that the Republican Senate would provide better conditions for creating a statutory regulation of the industry than the current one.
According to a forecast model from the news site The Hill, Republicans have a 70% chance of taking the Senate, but the House is up for grabs. Both Democrats and Republicans are currently preparing many pieces of legislation that would seek to address the use of cryptocurrencies in the United States, including bills related specifically to stablecoins and the broader market.
Lummis Calls for Clearer Guidelines from Congress on Crypto
There is controversy around the engagement of the US Securities and Exchange Commission (SEC) in regulating the crypto market. Still, some of the lawmakers have expressed their discontent with the regulatory actions of SEC Chair Gary Gensler, noting that the guidelines provided are not very clear. On the other hand, others argue that the SEC has been doing its best to protect investors. The enforcement action cases against major crypto firms such as Binance, Coinbase, and Kraken have been opened by the SEC, though they are in the judicial process.
Lummis reaffirmed the need for better guidelines from Congress. She pointed out that while the SEC says it has all the required tools to regulate, it has deployed enforcement more than carrying out rule clarification. Regarding the development of rules for digital assets, she focused on the need to act transparent and create rules for the growing market.
