How Will Cynthia Lummis’s Proposed Bill Affect Bitcoin
June 11 2022 - 9:00AM
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Senator Cynthia Lummis, a rancher and Republican senator from
Wyoming introduced a comprehensive and sweeping bill concerning
Bitcoin and crypto regulations. The RFI (Responsible Financial
Innovation) Act was released on June 7th by the Senator alongside
Kristen Gillibrand, a New York securities attorney, and Democrat
senator. Related Reading | Bitcoin Open Interest Falls As
Price Dips Below $31,000 According to Lummis, the proposed bill
will lead to cryptocurrency adoption into the traditional financial
system. Thus, enabling the digital currencies to become accepted as
commodities. Clear Distinction Between Bitcoin From Other
commodities The senator explained that, in promoting the crypto
bill before its deployment, if the bill becomes passed into law, it
will introduce a change. She said there would be a clear difference
between securities, commodities, cryptocurrencies, stablecoins,
collectibles, and NFTs. Furthermore, the case of the distinct
classification of securities and commodities will be determined by
Bitcoin, as it possesses the most possibility of a commodity.
Furthermore, Bitcoin has a strong resemblance to a commodity in its
volatility because of the demands for a scarce virtual asset with a
worldwide macro price association with the price of energy. Also,
Bitcoin’s inflation is caused by complex rigs that facilitate BTC
token mining programs that anyone can download. In a recent
interview, Sen. Lummis was asked about her view of the SEC
chairman’s stance on digital currencies being securities. She
responded by saying that she agreed with his view. Also, Lummis
noted that the two leading cryptos, Bitcoin and Ethereum, aren’t
considered securities. The Senators even added that the CFTC
(Commodities Futures Trading Commission) should regulate them, as
reported by Market Watch. This news isn’t a little step but a
product of long hours of consultation with mining and industry reps
to create legislation. Lummis stated that she hopes this proposal
bridges a concise regulation and, at the same time, doesn’t
suffocate advancement. Lummis reassured that there isn’t a need to
worry, as it’s not needful to overregulate Bitcoin. If they try to
do so, innovation of the asset will transition to other countries
where it’s more accepted. Michael Saylor’s Involvement In The
Legislation Another thing she stated was that the legislation would
clearly outline the obligations of the two present regulators.
These regulators include the CFTC and the US SEC (Securities and
Exchange Commission). It advances the existing regulations for
cryptocurrencies without introducing any newer regulatory entities.
Related Reading | U.S. Macro Pressure Responsible For Entire
Bitcoin Downtrend Senator Lummis’ leading advisor is Michael
Saylor, the Founder and Chief Executive Officer of MicroStrategy.
She explained that he was one of the first people who’d seen the
proposed bill, given his years of experience in crypto regulatory
advocacy, investment, and cryptocurrencies. In an interview with
Lex Fridman on his show “Tech and Science”, the MicroStrategy boss
refused to differentiate digital currencies from stocks. Also, he
stated that bitcoin and securities aren’t the same. Featured image
from The Pexels, chart from TradingView.com
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