Senator Cynthia Lummis, a Republican from Wyoming, will chair the new Senate Digital Assets … [+]
It has been a long journey for Senator Cynthia Lummis (R-WY) as she champions Bitcoin and digital assets in Congress. Earning respect and acceptance both in the bitcoin community and the legislative arena takes time, but after four years, Lummis will finally assume the role of Chair of the newly established Digital Asset Subcommittee under the Senate Banking Committee. This presents a historic opportunity as Congress moves toward passing comprehensive legislation on stablecoins and market structure, potentially within the next year.
However, Senator Kirsten Gillibrand (D-NY), Lummis’ longtime co-sponsor on crypto legislation, does not serve on the Senate Banking Committee. Therefore, Lummis must garner support from Senate Democrats on the committee to advance bipartisan initiatives. Gillibrand, along with Lummis, has already co-sponsored Senator Bill Hagerty’s (R-TN) GENIUS Act, signaling her commitment to bridging political divides in the evolving regulatory landscape that would start with stablecoin legislation.
Witness Endorsement of an X Article “That Colossal Wreck”
Among the scheduled witnesses for the upcoming hearing is Jai Massari, Co-Founder and Chief Legal Officer of Lightspark. This past Friday, February 21, Massari endorsed an article on X calling for significant reform within the SEC that included calling out Democrats who previously led the SEC’s crypto regulation by enforcement efforts under the Biden Administration.
Austin Campbell, an Adjunct Professor at the NYU Stern School of Business, former and recently appointed as the CEO of WSPN, who has been a frequent witness in Congress and thought leader on crypto policy, with a tradfi background from Chase, Stone Ridge and JP Morgan Chase, has been a vocal critic of the SEC’s regulatory approach under the Biden Administration. In his article mentioned above with respect to Massari’s endorsement, “That Colossal Wreck,” Campbell revealed that a senior Democratic Party official had urged him to temper his rhetoric toward former SEC Chair Gary Gensler and others who were previously at the SEC. According to Campbell, he refused and then was inspired to lay out his vision of what he felt should happen to those who participated in the SEC over the last four years based on the damage caused by their policies.
“They should not be allowed to return to the government, allowed anywhere near the levers of power, and anyone in the Democratic party supporting, aiding, abetting, or directing them should be ejected immediately and roundly derided for this absolutely shameful chapter in US financial regulatory history,” said Campbell.
Massari emphatically tweeted on X regarding Campbell’s article:
“This. All of this. Every word. @CampbellJAustin 🔥✅🏆 We must do better. Face the no good, very bad story and work to fix it. Caring about good government and institutions means taking a hard and clear-eyed look, particularly when it is not politically convenient.”
While it is not yet known what Massari will testify on specifically as written testimony is not yet public, this message seems to underscore the need for cooperation and bipartisanship to forge meaningful and long-lasting crypto legislation in the U.S., regardless of the politics involved. Between what appears to be a softer tone on crypto in the Senate Banking Committee from Ranking Member Elizabeth Warren (D-MA) and the drive by Chairman Tim Scott (R-SC) and the Republicans to pass stablecoin and possibly market structure legislation within the first 100 days of the Trump Administration, Massari and her other witnesses may spur on Congress toward historical, landmark laws for crypto in the U.S. that have been years in the making.
It is going to be a challenge for Lummis to make sure this new subcommittee can be effective. Her colleague across the aisle will be Ranking Member Ruben Gallego (D-AZ). Senator Gallego did vote last year when he was a Congressman for FIT21 in the House, as well as for the repeal of SAB 121, which according to industry ratings means he strongly supports crypto.
Details on the Witnesses and Hearing Information
Besides Massari, Mr. Jonathan Jachym, Deputy General Counsel and Global Head Of Policy & Government Relations for Kraken Digital Asset Exchange, will be testifying. Jachym just testified in the House The third and final witness posted at this point is Mr. Lewis Cohen, Partner, Cahill Gordon & Reindel LLP. Cohen is one of the leading “crypto native” lawyers in the United States and advises clients on complex legal and regulatory matters related to blockchain, cryptocurrency, and tokenization across global capital markets. a witness.
The hearing can be viewed via livestream starting on Wednesday, February 26 at 2:30pm ET and will take place in Dirksen Senate Office Building 538.
