Recent Senate hearings intended to discuss legislation on digital assets experienced low attendance, bringing attention to political tensions. Simultaneously, the Trump administration is preparing an order against the debanking of crypto firms.
Low Attendance at Hearings and Their Outcomes
The Senate hearing intended to discuss legislative frameworks for digital assets had only five out of the 11 members of the Senate Banking Committee's digital assets subcommittee present. The chair, Republican Senator Cynthia Lummis, pointed to the scheduling of competing committee meetings as a potential reason for the low turnout and expressed concern about the lack of bipartisan engagement.
Trump's Plans Against Crypto Debanking
The Trump administration is reportedly considering an executive order to prevent banks from denying services to crypto companies. This move is in response to claims of politically motivated discrimination by financial institutions. The issue gained urgency following the collapse of several crypto-friendly banks.
Federal Reserve's New Policy
The US Federal Reserve announced a significant policy shift by stopping the consideration of 'reputational risk' in bank oversight. This change has been welcomed by the crypto industry, as this concept was often used to justify debanking practices. However, critics warn it could lead to neglect of non-financial risks.
The situation regarding digital asset regulation in the US remains tense. The low attendance at hearings and potential changes from Trump indicate a need for more constructive dialogue and collaboration on legislation.
