Cryptocurrency Takes a Back Seat in U.S. Senate Banking Committee Hearing

IconCryptoNewsTerminal Staff11 Jul, 2024

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Cryptocurrency Takes a Back Seat in U.S. Senate Banking Committee Hearing

The U.S. Senate Banking Committee held a hearing on Tuesday to discuss various financial regulatory issues, but cryptocurrency was mentioned only sparingly. The hearing primarily focused on the nominations of Caroline Crenshaw to the Securities and Exchange Commission (SEC) and Christy Goldsmith Romero to the Federal Deposit Insurance Corporation (FDIC). During Crenshaw's questioning, she expressed support for SEC Chairman Gary Gensler's cautious approach to cryptocurrency regulation, including his opposition to spot bitcoin exchange-traded funds (ETFs). Crenshaw stated that she believes a physical bitcoin ETF could expose American investors to significant risks. Commissioner Romero briefly addressed the issue of crypto custody by U.S. banks. She believes that the FDIC should not dictate which industries banks can serve, including the cryptocurrency industry. Overall, cryptocurrency was not a major topic of discussion during the hearing, indicating that regulation of the industry remains a low priority for the committee.

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