- The incoming chairman of the U.S. Senate Banking Committee, Senator Tim Scott, has disclosed that the Financial Innovation and Technology for the 21st Century Act (FIT21) and the Stablecoin bill would be the first two starting points for clearer crypto regulation.
- Scott disclosed that he would be the chairman of creating a digital assets subcommittee for the first time.
The crypto industry gets a massive boost as the incoming Republican chair of the U.S. Senate Banking Committee, Senator Tim Scott, confirms to be in the same frequency as president-elect Donald Trump as far as crypto regulation is concerned.
The Details
Speaking at the Blockchain Association Policy Summit in Washington on Tuesday, Scott hinted that both the chambers of Congress and Trump’s administration would commence their pro-crypto initiatives with a Financial Innovation and Technology for the 21st Century Act (FIT21).
According to our research, FIT21 is a legislative plan that clarifies the role of different regulatory agencies in overseeing the crypto industry.
Our research also shows that the ACT put digital assets into three different categories – digital commodities, restricted digital assets, and permitted payment stablecoins. Meanwhile, FIT21 ensures that the regulatory authorities over digital commodities and their participants are allocated to the U.S. Commodities Futures Trading Commission (CFTC). However, authorities over restricted digital assets would be designated to the US Securities and Exchange Commission (SEC).
Apart from this, the stablecoin bill would be another starting point for clear and comprehensive industry regulation. According to Scott’s counterpart, who was with him at the event, French Hill, there is a need for the “Congress to do its job, find a compromise, and put things right.”
Today, @SenatorTimScott joined industry leaders at the 2024 @BlockchainAssn Summit!
As the top Republican on @BankingGOP, Sen. Scott will continue to champion policies for digital assets that increase economic opportunity and financial inclusion for all Americans. pic.twitter.com/NRpyBfIdku— U.S. Senate Banking Committee GOP (@BankingGOP) December 17, 2024
Pro-Crypto Policies to be Expected Under Scott
Disclosing some of the things to expect under his chairmanship, Scott disclosed that there would be a digital asset subcommittee for the first time. Fascinatingly, he also believes that crypto is the next wonder of the world.
In my opinion, it is the next wonder of the world. I’m going to be the chairman that creates a digital assets subcommittee for the first time.
According to a source, the outgoing Chairman, Senator Brown, has been a huge resistance to crypto progress in the Senate. Meanwhile, he lost the Ohio Senate race to a Republican Bernie Moreno at the just-ended election, as reported by CNF. Even so, it is expected that Senator Elizabeth Warren, who will be a new top Democrat of the committee, will heavily criticize most of the pro-crypto proposals. However, Scott lauded her tenacity, stating that “she is good at what she does.”
At the Policy Summit, SEC’s Republican Commissioner Mark Uyeda criticized the SEC accounting standard. The controversial SEC Staff Accounting Bulletin No. 121 (SAB 121) was reported to contain “wide-ranging ramifications” for policies that failed to go through the proper channel.
It can be recalled that the Senate voted 60-38 to overturn this policy. However, the outgoing president, Joe Biden, highlighted that removing this rule would affect the work to “protect investors in the crypto-asset market and to safeguard the broader financial system.” Meanwhile, the resolution failed to receive enough votes to make it Veto-proof.
According to the other SEC Republican Commissioner, Hester Peirce, some of the issues on board are outside their jurisdiction. She also disclosed their willingness to work with the CFTC to introduce better regulation.
We stand ready to work on things once that’s a possibility. … I think there are a lot of places for us to help.
