US Senator Cynthia Lummis announced that a bipartisan legislative framework for stablecoins and market structure can be expected soon.
Speaking during the first hearing of the Senate Banking Digital Assets Subcommittee on Wednesday, Lummis, a strong advocate for cryptocurrency and chair of the subcommittee, emphasized the progress being made. “We are on the verge of creating a bipartisan legislative framework for stablecoins and market structure,” she stated in her opening remarks.
????ICYMI???? Catch my opening statement below ⬇️https://t.co/tA7cQRgdgo
— Senator Cynthia Lummis (@SenLummis) February 27, 2025
The hearing, organized by the new digital assets subcommittee, focused on laying the groundwork for future legislation. Lummis pointed to the draft legislation she co-authored with Senator Kirsten Gillibrand from New York, which she described as a natural complement to the House’s Financial Innovation and Technology for the 21st Century Act. Lummis confirmed that stablecoins would be the committee’s priority, a sentiment shared by White House Crypto and AI Czar David Sacks and Senator Tim Scott of South Carolina, who chairs the Senate Banking Committee.
Timothy Massad, former chair of the Commodity Futures Trading Commission (CFTC) and one of the hearing’s witnesses, urged lawmakers to focus on stablecoin regulation first, delaying any efforts to tackle market structure issues for a few years. He pointed out that the crypto industry has long urged the SEC and CFTC to establish clear rules rather than relying on enforcement actions, which is now happening with the creation of a new crypto task force. He warned against rushing to “rewrite” securities laws, arguing that existing market structure proposals could add more confusion than clarity.
Moreover, Senator Mark Warner of Virginia raised concerns about the know-your-customer (KYC) processes for stablecoin transactions at the panel. He highlighted the issue of how stablecoins, despite being issued with KYC procedures, could be moved between wallets without going through the same verification steps.
Also Read: Crypto.com, Kraken Consider Launching Own Stablecoins in Europe