By George Ward
A US Senate Banking Committee member, Senator Tim Scott, is reportedly working on developing a bipartisan regulatory framework for digital assets. The Congressman seeks to carry on with Pat Toomey’s promise for 2023.
Ensuring Crypto Regulation
In a recent report, Senator Tim Scott revealed his intention to ensure appropriate guidelines for the digital asset industry. The Congressman has shown that the priority for the 118th Congress is to include a crypto framework that would see the adoption of holistic guidelines for the virtual asset ecosystem.
Scott was reportedly skeptical of another aspect of cryptocurrency, citing the high-profile collapse of some exchanges like the Terra LUNA and FTX, the loss of customer funds, and the use of crypto assets for illicit financial dealings. The lawmaker recently succeeded former senator Pat Toomey who stepped down without seeking another term.
During his time as a top banking committee member, Toomey was instrumental in the legislative drive to encourage innovation in the digital asset ecosystem. Meanwhile, Sherrod Brown, the Committee Chair, has called on Janet Yellen, the Treasury Secretary, to collaborate with financial regulators and lawmakers to develop comprehensive legislation for the crypto space.
Crypto Regulatory Discussions Continue
Last December, the Senate Banking Committee hosted a hearing to determine the cause of the FTX collapse and with the possibility to continue with its investigation in the new Congress session this year. Furthermore, the House Financial Services Committee headed the Patrick McHenry is expected to hold another meeting regarding the FTX crash, which has become the theme of discussion in most sessions.
As the Republican Party seems poised to control the US House of Representatives, McHenry is believed to have the power to set a new legislative plan for the finance committee. He has created a subcommittee that focuses on issues in the digital financial space considering the gaping hole left by the structures of the previous committee.
Many industry experts believe a lack of proper regulation prevents institutional investments in the sector.