U.S. Senator Announces "Digital Assets Year", Trump Crypto Assets Legislation to Reshape the Market

U.S. Senator Cynthia Lummis (R-WY) praised the President's Digital Asset Market Working Group on July 30, calling its latest report a significant advancement in America's leadership in financial innovation. As the Chair of the U.S. Senate's Digital Asset Banking Subcommittee, Lummis stated, "I am very pleased that we finally have a President who understands the transformative power of digital assets and distributed ledger technology in building the future of American finance. Since taking office in 2021, I have been studying many of the proposals put forth in President Trump's report, and I look forward to working with him to implement these transformative policies." She also wrote on the social media platform X, "This is the year of digital assets." This declaration not only highlights the shift in U.S. policy regarding Crypto Assets but also signals that legislation on Crypto Assets will reshape the market landscape.

Loomis: Digital Assets are the Transformative Force of America's Financial Future

Senator Cynthia Loomis, as the Chair of the U.S. Senate Digital Asset Banking Subcommittee, has always been a staunch advocate for Crypto Assets in Congress. Her praise for the President's report from the Digital Asset Market Working Group highlights the shift in the U.S. government's attitude toward digital assets from caution to active support.

Loomis emphasized that the priorities outlined in the presidential report resonate with the legislative initiatives she has advocated over the past four years. This indicates that U.S. policy-making in the realm of digital assets is gradually shifting from fragmented regulatory actions to a more comprehensive and systematic legislative framework.

Criticism of the Federal Reserve: Eliminate the "action bottleneck" hindering the development of Crypto Assets

Loomis has consistently criticized the Federal Reserve's (Fed) conservative stance on digital assets. She lambasted the Fed's committee and its regional banks for failing to comply with federal laws regarding access to master accounts for digital asset deposit institutions. Her criticism even led to the withdrawal of the nomination of Sarah Bloom Raskin for a senior regulatory position at the central bank.

Lummis further condemned a hidden directive within the Federal Reserve that weighs "reputational risk" and "controversial comments" when evaluating banks involved with crypto assets risk — she linked these actions to "Bottleneck 2.0." This shows that Lummis believes the Federal Reserve's conservative attitude and internal directives hinder the normal development of crypto assets within the U.S. financial system.

Promoting Comprehensive Digital Asset Legislation: From Sandbox to Tax Reform

In addition to regulatory accountability, Loomis also advanced comprehensive digital asset legislation.

Financial Technology Sandbox Framework: In 2022, she introduced a financial technology sandbox framework based on Wyoming's 2019 law, and is currently incorporating it into the Senate Banking Committee's broader market structure reform proposal. This sandbox mechanism is designed to provide a regulated testing environment for emerging financial technology and crypto assets innovations.

Digital Asset Tax Reform: She also drafted a bill to reform digital asset taxation, including minimum exemptions, reductions for miners and stakers, and revisions to the corporate alternative minimum tax. These tax reforms aim to ease the compliance burden on Crypto Assets users and encourage the development of digital assets.

Despite concerns from critics about the weakening of regulatory efforts, supporters believe that such reforms will ensure that the United States maintains global competitiveness in the field of blockchain innovation.

Conclusion:

U.S. Senator Cynthia Lummis announces the "Digital Asset Year," marking a new phase for the U.S. in cryptocurrency legislation. This positive policy shift aims to provide a clearer regulatory framework for digital assets, eliminate developmental barriers, and solidify the U.S.'s leadership in financial innovation. With the advancement of related legislation, the cryptocurrency market is expected to welcome broader development opportunities.