U.S. Lawmakers Form Working Group for Digital Assets Regulation

U.S. lawmakers are forming a working group, comprising key members from both the House and Senate, to create a regulatory framework for digital assets and stablecoins.

During a press conference on Tuesday, David Sacks, the White House A.I. and Crypto Czar, announced the group’s formation alongside:
– Senate Banking Committee Chair Tim Scott (R-S.C.)
– Senate Agriculture Committee Chair John Boozman (R-Ark.)
– House Financial Services Committee Chair French Hill (R-Ark.)
– House Agriculture Committee Chair G.T. Thompson (R-Pa.)

Current Efforts in the Senate

Work is already in progress in the Senate to regulate stablecoins. On Tuesday, Sen. Bill Hagerty (R-Tenn.) introduced a bill aimed at establishing a regulatory framework that will determine whether issuers will be regulated by the federal government or the states. Hill mentioned that an upcoming stablecoin bill will be “very similar” to the Senate’s approach.

Ongoing Work in the House

House lawmakers have been pursuing a stablecoin bill for several years. Retired former House Financial Services Committee Chair Patrick McHenry (R-N.C.) collaborated with top Democrat Maxine Waters (D-Calif) since 2022 to establish a regulatory framework for stablecoins. A contentious point within that bill was a provision allowing state regulators to approve stablecoin issuances without Federal Reserve input.

Previously, McHenry led efforts for the House to pass the Financial Innovation and Technology for the 21st Century Act (FIT21), which aimed to empower the Commodity Futures Trading Commission to oversee crypto spot markets and define parameters for the Securities and Exchange Commission.

Future Regulations

Hill mentioned that a future market structure bill to regulate crypto comprehensively will resemble FIT21 and noted its bipartisan support. “That bill, I think, had the basics for the exact bill that we’ll propose to introduce again in the 119th Congress,” said Hill.

Support from the Trump Administration

The Trump administration has maintained a supportive stance toward crypto. Ahead of elections, President Donald Trump expressed in August his intention to help ensure the U.S. becomes the crypto capital of the world. He appointed crypto-friendly former regulator Paul Atkins to lead the SEC and placed Sacks in charge of a working group responsible for crafting a federal regulatory framework for digital assets, including stablecoins. This group will also evaluate the potential creation of a “strategic national digital assets stockpile.” Key officials in this endeavor will include Treasury Secretary Scott Bessent and the chairs of the SEC and CFTC.