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CYNTHIA LUMMIS NOMINATED TO LEAD NEW SENATE BANKING SUBCOMMITTEE ON DIGITAL ASSETS

Lummis stated that the subcommittee will bolster the idea of a US strategic Bitcoin reserve and will prevent crypto firms debanking.

Senator Cynthia Lummis (R-Wyo.) has been named the first chair of the newly established Senate Banking Subcommittee on Digital Assets, according to a Jan. 23 announcement.

As a result, Senate Banking Committee Chair Tim Scott (R-S.C.) places Lummis at the helm of legislative efforts to craft a regulatory framework for blockchain technology and crypto in the US.

Senator Lummis, known for her strong Bitcoin (BTC) advocacy, expressed her enthusiasm for the new role:

“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.”

Lummis also emphasized the strategic importance of bolstering the US dollar with a national Bitcoin reserve, a proposal that could position the US as a crypto trailblazer. She introduced the Bitcoin Act legislation last year at the Bitcoin 2024 conference in Nashville.

The subcommittee will prioritize passing bipartisan legislation focused on market structure, stablecoins, and consumer protections. It will also oversee federal financial regulators to ensure compliance with the law and prevent initiatives like “Operation Chokepoint 2.0,” which some lawmakers view as an overreach by regulators.

Scott praised Lummis as the ideal leader for this new subcommittee and described her as a steadfast champion of blockchain technology and crypto.

He said:

“Since day one, Senator Lummis has been a leader on digital assets legislation. Working with the Trump administration and our colleagues in the House, we will advance a commonsense regulatory framework to facilitate innovation here in the United States, not overseas.”
The bipartisan composition of the subcommittee includes Senators Thom Tillis (R-N.C.), Bill Hagerty (R-Tenn.), Bernie Moreno (R-Ohio), Dave McCormick (R-Pa.), Ruben Gallego (D-Ariz.), Mark Warner (D-Va.), Chris Van Hollen (D-Md.), and Tina Smith (D-Minn.). Gallego will be the ranking member, highlighting the subcommittee’s commitment to bipartisan collaboration.

The announcement has sparked optimism among the industry. Dennis Porter, co-founder and CEO of Satoshi Action Fund, said Lummis’ appointment was “a huge step forward” for advancing meaningful legislation, including the proposed Strategic Bitcoin Reserve.

Meanwhile, former Binance CEO Changpeng Zhao called the idea of a US Bitcoin reserve “pretty much confirmed” and commended the speed at which crypto developments unfold.

@ Newshounds News™

Source:  Crypto Slate

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TAIWAN TO UNVEIL DRAFT BILL ALLOWING BANKS TO ISSUE STABLECOINS

The Taiwanese financial regulator plans to unveil a draft bill for virtual asset service providers (VASPs) in June, which includes a proposal allowing banks to issue stablecoins.

Joint Management of Stablecoins

The Taiwanese Financial Supervisory Commission (FSC) is set to unveil a draft bill for virtual asset service providers (VASPs) in June. According to a report, a key highlight of the draft bill is a proposal to allow banks to issue stablecoins. FSC Chairman Peng Jinlong argues that the bill’s passage would facilitate Taiwanese investor participation in the virtual asset market.

The report quotes Zhuang Xiuyuan, a director at an unidentified bank, as saying that all stablecoins issued in Taiwan will require FSC approval. Xiuyuan suggested that unlike the current system where issuers self-certify their stablecoin backing, the new regime would see the regulator providing issuer qualifications.

Jinlong meanwhile disclosed that the stablecoins will be jointly managed by banks and Taiwan’s central bank.

Revelations that Taiwan plans to unveil a regulatory framework for virtual asset service providers (VASPs), including provisions for bank-issued stablecoins, come amid a U.S. push to regulate stablecoins.

One of the U.S. bills, the Lummis-Gillibrand Responsible Financial Innovation Act, mandates that issuers back stablecoins with high-quality liquid assets, such as short-term U.S. Treasury securities. Like the FSC draft bill, the Lummis-Gillibrand proposal requires issuers of payment stablecoins to obtain a federal license.

The Stablecoin TEFRA Act, backed by Rep. Patrick McHenry, proposes that only banks be allowed to issue stablecoins. While the McHenry-backed bill may seemingly have limited consumer protection provisions, the Lummis-Gillibrand bill is said to include provisions for consumer protection, such as disclosure requirements and anti-money laundering safeguards.

Similarly, the FSC’s draft VASP bill reportedly emphasizes anti-money laundering protocols and risk assessments.

@ Newshounds News™

Source:  Bitcoin News

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BRICS: US TARIFFS MAY DO MORE HARM THAN GOOD, DATA SHOWS

With the economic alliance becoming a clear challenger to the recently appointed president of the United States, the BRICS bloc has seen itself on the receiving end of US Tariff threats. However, that street goes both ways. Moreover, data shows that, in the end, it could do more harm than good to the Western nation.

Since his election victory, US President Donald Trump has not minced words in relation to BRICS. As the group has continually embraced de-dollarization efforts, he has fought back. Yet, using tariffs to ensure the stability and prominence of the US dollar could be a decision that has immense consequences.

Trump Tariff Threat to BRICS Nations Have Massive Implications for US, Data Says

During his campaign for reelection, Donald Trump had placed an immense focus on the US dollar’s status. Specifically, he reiterated the importance of ensuring that the greenback remained the world currency. Indeed, he said that its relegation from such a position would be akin to the nation “losing a war.”

That has led him to take action against the BRICS alliance early in his return to the Oval Office. Yet, the way he has chosen to go about challenging the group could end up being problematic. Ultimately, the BRICS US tariff threat could do more harm than good to the Western nation, data shows.

The major point of concern lies in the lopsided trade between the United States and BRICS nations. Specifically, Statista data shows that the US is currently running a trade deficit with the economic alliance nations overall. That means that the country imports far more than it sells to them.

The report notes that the group is almost certain to issue retaliatory tariffs. Moreover, that could give US importers a lot to lose in their total trade. In 2023, the US shipped nearly $300 billion in goods to the BRICS countries. Alternatively, it purchased nearly $650 billion worth of various merchandise.

There is the potential for lower trade tariffs, the report notes. This is even more likely considering Trump has held a disdain for trade deficits. Conversley, de-dollarization is a key point of emphasis.

It has not taken hold the way BRICS has hoped. Is the threat of tariffs worth awaiting if Trump sticks to his plan? Or can the mere threat of action drive the bloc to ensure the dominance of the greenback? 

The next several months will surely be filled with vital geopolitical developments, with the US and world economies hanging in the balance.

@ Newshounds News™

Source:  Watcher Guru

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