Cynthia Lummis’ proposed bill can heavily affect Bitcoin and other cryptocurrencies as well but according to her, it can lead to crypto adoption into the traditional financial system and can enable digital currencies to become more accepted as commodities so let’s read more today in our latest Bitcoin news.
Senator Lummis introduced a comprehensive bill around bitcoin and crypto regulations. The Responsible Financial Innovation Act was released on June 7th by Lummis alongside Kirsten Gillibrand, a Democrat senator. Cynthia Lummis’ proposed bill will lead to massive crypto adoption in the traditional financial system and will enable digital currencies to become more accepted as commodities. The senator explained in promoting the bill that if it becomes law, it will make a huge change as there will be a clear difference between commodities, securities, stablecoins, NFTs, and cryptocurrencies.
In the case of distinct classification of securities and commodities will be determined by BTC. Furthermore, BTC has a strong resemblance to a commodity in the volatility beucase of the demands for a scarce asset with a macro price association and the price of energy. Bitcoin’s inflation is also caused by complex rigs which facilitate BTC token mining programs which anyone is able to download. Lummis was asked about her view on the SEC chairman’s stance on digital currencies and she did say she agreed with his view.
Lummis noted that Bitcoin and ethereum are not considered securities so the Senators added that the CFTC should regulate them as well. The news is not just a little step but a product of long hours of consultation with the mining and industry reps to create a regulatory framework. Lummis hopes the proposal bridges a concise regulation and that this will not hinder the advancement. She assured me there’s no need to worry but also there’s no need to overregulate Bitcoin. If they do so, the innovation of the asset will transition to other countries that accept it. Another thing she noted was that legislation will outline the obligations of the two present regulators the CFTC and the SEC.
Lummis’ leading advisor is Michael Saylor and she explained that he was one of the first people that saw the proposed bill beucase of his many years of experience in the field. The Microstrategy boss refused to make a difference between digital currencies and stocks and stated that Bitcoin and securities are not the same.