Cynthia Lummis Senate Supporting Crypto, Wants To Introduce Crypto Currency Bill In The US

- US Senator, Cynthia Lummis, one of the supporters of crypto in the US. (photo: twitter)

JAKARTA - US Senator Cynthia Lummis, who is also a member of the US Senate Banking Committee and one of only two senators to hold Bitcoin in her investment portfolio, plans to introduce a bill that will drastically change the legislative and regulatory landscape for cryptocurrencies.

The bill aims to cover various regulatory hurdles that include consumer protection, regulation of stable coins, and the creation of a new organization to oversee digital asset markets under the joint jurisdiction of the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC).

According to a report by Bloomberg, the bill would create a new regulatory body to deal with crypto affairs. The bill will reportedly also stipulate how different types of crypto assets are classified for regulatory purposes, codify crypto taxation rules, outline regulations for stable coin providers, and include consumer protection.

US Senator Lummis, a fairly vocal Bitcoin advocate, is optimistic that he will eventually reach an agreement on a legal framework for digital assets that resolves many longstanding issues, including "regulatory jurisdiction, market integrity, self-regulatory organization, and stable coins".

His support for the crypto industry led him to recently write an opinion piece for the New York Times asking Congress to block Jerome Powell and Lael Brainard's nominations to the Federal Reserve over their "political approach to digital assets" in their home state, which has already passed several statutes. crypto friendly law.

Crypto regulation is currently at a crossroads in the US, with industry, Congress, and regulators all saying the industry needs to be regulated but none quite agreeing on how or by whom it is regulated.

The chairman of the US SEC, Gary Gensler, has sought to consolidate the scrutiny of the crypto market under his agency. He even pointed to the fact that many assets listed on crypto exchanges could possibly be classified as securities, i.e. tradable financial instruments such as stocks and bonds.

Meanwhile, CFTC Chairman Rostin Behnam has pushed his agency, which has traditionally overseen derivative products such as Bitcoin futures, to be given more jurisdiction to regulate Crypto.

The SEC, in the past, has debated whether cryptocurrencies are securities for a long time and has determined that Bitcoin is not a security. However, the CFTC views Bitcoin as a digital commodity. On the other hand, the IRS considers Bitcoin and other digital currencies like property.

Companies that seek to function under the existing regulatory framework face hurdles due to this inconsistent treatment. In recent testimony before the US Congress, crypto CEOs have often emphasized the lack of a clear regulatory framework for the business.