US Senate to Create First Crypto Subcommittee, Trump Eyes Pro-Crypto CFTC Chair

As President-elect Donald Trump’s inauguration on January 20 draws closer, reports suggest two major developments in the crypto industry that could significantly impact the future of regulation.

Senate Banking Committee’s First Crypto Subcommittee

The US Senate Banking Committee is reportedly set to create its first-ever crypto subcommittee.

This initiative, led by new Senate Banking Committee Chair Senator Tim Scott, aims to mirror the House Financial Services Committee’s model, which introduced its own crypto subcommittee in 2023.

Senator Cynthia Lummis, a long-time crypto advocate, is poised to chair the new subcommittee, with a vote expected soon. Lummis has recently supported Trump’s vision for a Bitcoin reserve.

The subcommittee is seen as a positive step for the crypto industry, as it would provide more oversight and regulation.

Some of the senators being considered for the subcommittee include Bernie Moreno, Dave McCormick, Thom Tillis, and Bill Hagerty, all of whom are known to be strong crypto supporters.

However, it remains unclear which Democrats will join, with Senator Elizabeth Warren, a prominent crypto skeptic, being the most senior member of the Senate Banking Committee.

Mersinger Tipped to Lead CFTC

In another development, Summer Mersinger, a current CFTC commissioner, is reportedly a leading candidate to become the next chair of the Commodity Futures Trading Commission (CFTC).

The CFTC has played a key role in crypto regulation, and Mersinger’s pro-crypto stance has made her a top pick.

She has publicly expressed discomfort with the CFTC’s approach to setting policy through enforcement cases and has been vocal about supporting the industry.

Mersinger’s candidacy has gained momentum, with some insiders suggesting that she could be appointed as the CFTC’s temporary chair while awaiting Senate confirmation.

She has previously worked as a staffer for Senate Majority Leader John Thune and is seen as someone who could pass a Senate confirmation with ease.

What’s Next?

As Trump prepares to take office, these developments could mark a significant shift in the US’s approach to crypto regulation.

The Senate’s crypto subcommittee and the potential appointment of a pro-crypto CFTC chair signal a shift towards a more crypto-friendly regulatory environment, potentially solidifying the US as a “crypto capital”.

The crypto industry is closely watching these changes, with hopes that they will lead to clearer, more favorable regulations that foster growth and innovation.