Bipartisan group to craft US digital asset regulations
U.S. lawmakers announced the formation of a bipartisan working group aimed at developing a regulatory framework for digital assets and stablecoins. This initiative brings together influential members from both the House and Senate, spanning key committees.
The working group was revealed during a press conference, which included White House A.I. and Crypto Czar David Sacks. He was joined by Senate Banking Committee Chair Tim Scott, Senate Agriculture Committee Chair John Boozman, House Financial Services Committee Chair French Hill, and House Agriculture Committee Chair G.T. Thompson. The group's creation marks a concerted effort to address the burgeoning digital asset space.
In the Senate, efforts to regulate stablecoins are already progressing, with Sen. Bill Hagerty introducing a bill to establish a regulatory framework. This bill outlines parameters for determining whether stablecoin issuers will fall under federal or state regulation. According to Chair Hill, a forthcoming stablecoin bill in the House will closely align with the Senate's approach.
The House has seen previous attempts to pass a stablecoin bill, notably by the now-retired Chair Patrick McHenry and Democrat Maxine Waters (NYSE: WAT ). Their collaboration aimed to set up a framework for stablecoins since 2022, facing challenges such as the role of state regulators in stablecoin issuance without Federal Reserve involvement.
McHenry also spearheaded the passage of the Financial Innovation and Technology for the 21st Century Act (FIT21) in the House. FIT21 proposes enhanced power and funding for the Commodity Futures Trading Commission to oversee crypto spot markets and digital commodities, including bitcoin, while setting boundaries for the Securities and Exchange Commission's involvement.
Looking ahead, Chair Hill anticipates that a future bill to regulate the broader crypto market will mirror FIT21, citing its bipartisan support and the likelihood of reintroducing it with minimal changes in the 119th Congress.
The Trump administration has shown support for the crypto industry, with President Donald Trump expressing his ambition for the U.S. to become the global crypto capital. Trump appointed Paul Atkins, a crypto-friendly former regulator, to lead the SEC and selected David Sacks as Crypto Czar.
Sacks will head the working group tasked with crafting a federal regulatory framework for digital assets, including stablecoins, and explore the potential for a strategic national digital assets stockpile. This group will also involve key figures like Treasury Secretary Scott Bessent and the chairs of the SEC and CFTC.
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