Senator Cynthia Lummis’s appointment as Chair of the Senate Panel on digital assets marks a pivotal shift in US crypto policy, with focus on establishing a Bitcoin reserve amid BRICS’ challenge to dollar dominance.
The journey to implement a strategic Bitcoin BTC $69 659 24h volatility: 0.4% Market cap: $1.39 T Vol. 24h: $39.59 B reserve in the United States was further streamlined earlier today, January 23, after Tim Scott, the Chairman of the Senate Banking Committee, named US Senator Cynthia Lummis as the first chair of the Senate Panel on digital assets.
Before the senate vote that confirmed her nomination, Lummis posted on her X account that ‘₿ig things are coming’, possibly signaling the imminent implementation of a strategic Bitcoin reserve.
What to Expect from Lummis in Senate Banking Subcommittee on Digital Assets
In a statement released following her confirmation, Lummis noted that she will lead bipartisan legislation to President Donald Trump and help secure the country’s future. Moreover, the growing dominance of the BRICS movement has threatened the US dollar’s dominance as the global reserve currency.
With Bitcoin showing a better performance over gold in the long haul, the United States under the Trump administration is keen to add it to the Federal Reserve assets.
“Digital assets are the future, and if the United States wants to remain a global leader in financial innovation, Congress needs to urgently pass bipartisan legislation establishing a comprehensive legal framework for digital assets that strengthens the US dollar with a strategic bitcoin reserve,” Lummis noted.
According to Scott, the 119th US Congress has the mandate to help the Trump administration democratize the adoption of blockchain technology to revolutionize the financial world. Moreover, more countries, led by El Salvador, are fast adopting digital assets to fight their ballooning national debt.
According to Lummis, the Senate Banking Subcommittee on Digital Assets will have two main areas to focus on in the coming year. One, the subcommittee will be responsible for passing bipartisan digital asset legislation, which promotes responsible innovation and consumer protection.
With the mandate of strengthening the US dollar, the subcommittee will ensure a seamless implementation of a strategic Bitcoin reserve. The Senate Banking Subcommittee on Digital Assets will also focus on conducting robust oversight over Federal financial regulators to ensure operation chokepoint 2.0 never happens again.
Market Impact
Following the announcement, Bitcoin price briefly rallied nearly 2 percent to reach a daily range high of about $106,732 before retracting. As Coinspeaker reported earlier today, Bitcoin price has been forming a short-term bearish sentiment with a target of around $91k before continuing with bullish sentiment.
Nonetheless, the nomination of Lummis as the Chair of the Senate Banking Subcommittee on Digital Assets will have a long-lasting impact on the cryptocurrency market. Furthermore, clear crypto regulatory frameworks in the United States will help more institutional investors to seamlessly adopt digital assets as a hedge against inflation and market uncertainties.
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