Key Takeaways:
- Senator Cynthia Lummis plans to introduce a crypto bill next year that would radically alter the legislative and regulatory landscape for cryptocurrency.
- According to the article, the plan would establish a new regulatory agency to monitor cryptocurrency matters, controlled jointly by the Securities and Exchange Commission and the Commodity Futures Trading Commission.
Senator Cynthia Lummis of Wyoming, one of cryptocurrency’s most outspoken supporters in Congress, aims to introduce a comprehensive measure next year that would handle everything from how digital assets are taxed and classified to consumer protections.
According to a senior aide who spoke to Bloomberg on December 22, the bill includes consumer protections, stablecoin regulation, and the creation of a new organization to oversee the digital asset market under the combined jurisdiction of the Commodity Futures Trading Commission and the Securities and Exchange Commission.
In a tweet, the politician asked her fans to rally support for her bill in the Senate.
“Welcome bipartisan cosponsors! Please encourage your Senator to reach out and consider it,” Lummis said, alluding to the proposed legislation.
Lummis has already stated her support for cryptocurrency. She is an investor who has publicly stated that she has 5 Bitcoin.
Furthermore, if the measure is passed, it will provide clear advice to regulators on which digital assets belong to which asset classes.
Lummis, a member of the Senate Banking Committee, is well-known as a strong proponent of Bitcoin, which she is also interested in. She confirmed a Bitcoin purchase of between $50,001 and $100,000 earlier this year in October, according to documents.
Lummis is the only ranking member of the Senate Banking Committee with crypto experience, aside from Senator Pat Toomey (R-PA). Both senators were against a provision in the US infrastructure plan that required bitcoin brokers to track and report transactions for tax purposes.
The SEC has debated whether cryptocurrencies are securities for a long time and has determined that Bitcoin is not a security, but the CFTC views Bitcoin as a digital commodity. On the other hand, the IRS considers Bitcoin and other digital currencies to be property.
Companies attempting to function under the existing regulatory framework face hurdles due to this inconsistent treatment. In their recent testimony before the US Congress, crypto CEOs frequently emphasized the lack of a clear regulatory framework for the business.
The Senator had previously stated that Bitcoin is “digital gold,” implying that the asset will be here to stay.
“I do think that Bitcoin is here to stay. And I think a lot of the others are not, the fact that Bitcoin is fully decentralized and that some of these others were issued by a person or an entity that kept a large block of the coin for themselves, and then issued others to participate means they look more like a security than a commodity. Bitcoin is clearly a commodity. It is digital gold,” stated Lummis.
Lummis proposed law could help close the regulatory gap. However, political opponents may object to the proposed legislation because of Lummis’ Bitcoin investment, creating a conflict of interest.
Notably, an increasing number of politicians and federal workers in the United States are working with cryptocurrency.
For example, Lummis’ Wyoming website uses the Bitpay platform to accept Bitcoin donations for campaign contributions. At the same time, former South Carolina gubernatorial candidate John Warren just initiated GEM Mining, a new Bitcoin mining company, last December 15.
