U.S. Lawmakers Launch Bipartisan Digital Assets Working Group, Plan Regulatory Framework

TLDR:

• A bipartisan congressional working group has been formed to develop a unified regulatory framework for digital assets, led by key committee chairs from both Senate and House
• The Trump administration’s Crypto Czar David Sacks hosted the first-ever U.S. government press conference on digital assets, emphasizing regulatory clarity as a priority
• The initiative aims to maintain U.S. leadership in digital innovation while ensuring consumer protection, with plans to evaluate a Strategic Bitcoin Reserve
• Lawmakers are focusing on educational efforts to help members of Congress better understand cryptocurrency and blockchain technology
• The working group includes members from Senate Banking, House Financial Services, and Agriculture Committees from both chambers

The United States government has taken a step toward creating clear regulations for digital assets with the formation of a new bipartisan congressional working group. The initiative, announced at the first-ever U.S. government press conference on digital assets, brings together key lawmakers from both chambers of Congress and the Trump administration.

Senate Banking Committee Chairman Tim Scott (R-SC), Senate Agriculture Committee Chairman John Boozman (R-AR), House Financial Services Committee Chairman French Hill (R-AR), and House Agriculture Committee Chairman G.T. Thompson (R-PA) are leading the effort to create a comprehensive regulatory framework for cryptocurrencies and other digital assets.

David Sacks, appointed as the White House A.I. and Crypto Czar under the Trump administration, outlined the administration’s commitment to supporting digital asset growth. He referenced a recent executive order that established both a working group and its mandate to propose federal regulations governing digital assets and stablecoins.

The working group’s primary goal is to ensure that innovation in the digital asset space happens within the United States rather than overseas. This comes after what Sacks described as “four years of arbitrary prosecution and persecution of crypto companies” under the previous administration, where he said many founders faced unclear rules and even personal banking restrictions.

Representative French Hill emphasized that the United States should not fall behind in financial technology and digital assets. He stated that innovators need clear guidelines about regulatory requirements, prompting the formation of the cross-committee working group.

The initiative represents a coordinated effort between the Senate Banking Committee, House Financial Services Committee, and both chambers’ Agriculture Committees. This structure acknowledges the complex nature of digital assets and the need for oversight from multiple regulatory perspectives.

Senator Boozman addressed the varied nature of digital assets, noting that some qualify as commodities while others are securities. This distinction will help determine which regulatory agencies oversee different types of crypto assets.

Representative Thompson drew parallels between the current state of digital assets and previous phases of internet development. He characterized the current phase as “Internet 3.0” or the “Internet of value,” emphasizing America’s historical leadership in technological innovation.

The working group plans to prioritize consumer protection while fostering innovation in the cryptocurrency industry. Thompson stated that the opportunities in the crypto space are extensive, with a focus on bringing certainty to digital asset markets.

Educational initiatives form a key component of the working group’s agenda. Representatives Thompson and Hill stressed the importance of providing educational resources to members of Congress, given the technical complexity of blockchain technology and digital assets.

The press conference also revealed bipartisan efforts in the Senate, with Senator Scott mentioning collaboration between Senators Cynthia Lummis (R-WY) and Kirsten Gillibrand on market structure legislation.

Addressing anti-money laundering concerns, Senator Scott advocated for a broader conversation about bad actors across all financial systems, rather than focusing solely on digital assets. Representative Hill supported maintaining AML regulations similar to those in traditional finance.

Sacks made a point to differentiate between Bitcoin and other crypto assets, explaining that while Bitcoin is a cryptocurrency, other digital assets operate on blockchains, which he described as distributed ledgers.

One notable development from the press conference was the revelation of plans to evaluate creating a Strategic Bitcoin Reserve. Sacks confirmed this initiative was included in the President’s executive order and would be among the first items examined by the administration’s internal working group.

The working group represents the first coordinated effort between Congress and the executive branch to create comprehensive digital asset regulations. Its formation marks a shift toward proactive policy-making in the cryptocurrency space.