US Senator Lummis Cynthia has officially been appointed Chair of the Senate Banking Subcommittee on Digital Assets, which shows the country is taking a new approach to regulating cryptocurrencies. Senate Banking Committee Chair Tim Scott announced that this move follows rising interest in Bitcoin (as a reserve asset).

The subcommittee will draft bipartisan legislation regulating digital assets, including cryptocurrencies and NFTs. The subcommittee’s goals include bolstering US dollar security, increasing consumer protection, and encouraging responsible creativity within the financial sector.

Will Bitcoin Reserve become a Federal Asset under Lummis Cynthia’s Subcommittee?

Lummis Cynthia posted ‘Big things are coming’ on her X account, hinting at massive regulatory changes for the crypto industry in the country. These plans include establishing a Bitcoin reserve to strengthen the assets held by the US Federal Reserve.

Doing so will help the US avoid challenges to its dollar dominance, especially the BRICS alliance and other upcoming global dynamics. In her first statement as chair, Lummis restated the importance of outlining digital asset legislation to enable the US to remain globally competitive in financial innovation.

President Trump’s administration is championing the adoption of blockchain and cryptocurrencies, with other countries like El Salvador demonstrating how Bitcoin could alleviate economic challenges.

Legislative Priorities for Senator Lummis Cynthia’s Subcommittee

Lummis said one of the subcommittee’s main goals is to avoid repeating highly controversial regulatory practices that have ‘choked’ innovation and competition. The panel’s efforts this year will likely be focused on promoting transparency and accountability in financial supervision.

Like many other visionary leaders, Lummis Cynthia anticipates support from all sectors, especially when policies need to balance innovation with caution. This balance involves addressing all the risks digital assets provide while allowing blockchain technology to be used within traditional financial systems.

The aim is to put the US at the forefront of progress in the constantly changing global economy. Like the other subcommittees, the Lummis-headed subcommittee will aim to promote confidence in consumers and investors by establishing adequate regulatory frameworks.

The Crypto Market Rallies After Lummis Cynthia’s Announcement

The crypto market responded positively to the announcement, with Bitcoin’s price at around $106,732, about a 2% intraday gain. Some investors were bullish about the potential clarity this could bring to cryptocurrency regulation. Analysts predict long-term positive outcomes for the market as regulators establish proper frameworks for the crypto industry.

Senator Elizabeth Warren Rips into Trump’s Tokens

Amid the buzz surrounding Lummis Cynthia’s appointment, Senator Elizabeth Warren has raised ethical and legal concerns about some tokens associated with Donald and Melania Trump. In a recent letter, Warren encouraged the White House and lawmakers to direct the US financial regulators and the Office of Government Ethics to investigate the launch of TRUMP and MELANIA tokens.

Warren expressed concern that the launched coins provided personal profit for the Trump family. A notable concern is the TRUMP token, which is affiliated with Donald Trump.

A few days before he took his oath of office on Jan. 20, the coin peaked at $74 before plunging 57% to trade around $30 at the time of writing. Similarly, Melania Trump’s MELANIA token reached a peak price of $13 but currently trades at $2.64.

Conflict of Interest Linked to the Trump-themed Memecoins

Warren, a member of the Senate Banking Committee, alleged that the Trump family-controlled Trump Organization holds 80% of the TRUMP token supply. This level of centralization leaves 20% of investors exposed to enormous price volatility.

The senator warned that foreign enemies could secretly purchase these ballooning tokens, leading to “unrestrained and untraceable foreign influence” during the Trump presidency. Warren directed her letter to David Huitema of the Office of Government Ethics, David Lebryk of the Treasury, Mark Uyeda of the SEC, and Caroline Pham of the CFTC.

She asked them and Congressman Jake Auchincloss to issue their official statements by Feb. 4 regarding token regulations, ethical concerns, and protection for retail investors. Meanwhile, Maxine Waters, a US House of Representatives Financial Services Committee member, referred to the TRUMP token as a typical example of “the worst of crypto.”

Legal analysts predict that there will be an increase in the number of lawsuits associated with the launch of the memecoins.