The Possible Effect of Cynthia Lummis’ Proposed Bill on Bitcoin Examined

American Senator, Cynthia Lummis of Wyoming proposed a bill to the US Senate for Bitcoin and cryptocurrency regulation. Called the Responsible Financial Innovation Act, the bill was taken to the Senate by Senator Lummis on 7th June. She was supported by Senator Kristen Gillibrand, Democrat Senator from New York.

The Senator said the bill will lead to a wider crypto adoption within the traditional finance system. It will, therefore, let digital currencies become acceptable as commodities.

A Clear Separation of Bitcoin from Other Crypto Assets

Senator Lummis said that if the bill becomes law, it is going to bring changes. She explained that there will be differences between commodities, securities, stablecoins, NFTs, and cryptocurrencies.

Much more, the situation of a definite categorization between commodities and securities will be defined by Bitcoin. It is so because it has better possibilities for commodities.

Again, Bitcoin has a strong similarity to a commodity in the case of its volatility. This arises because there is demand for a scarce digital asset with a global price tied to energy price. Equally, Bitcoin inflation is a result of rigs that aid the coin’s mining which can be downloaded by anyone.

Senator Lummis was asked in a recent interview about her perspective on the SEC Chairman’s view on virtual currencies. The Senator said she is in perfect alignment with the Chairman’s positions. She equally noted that Bitcoin and Ethereum are not seen as securities.

She added further that the Commodities Futures Trading Commission ought to regulate them. The bill is not a small step but a result of various consultations with industry experts. Lummis said she hopes the bill leads to a simple regulation and does not stifle advancement.

She gave an assurance that there is no cause for alarm. There is absolutely no need to overregulate Bitcoin. If anyone tries to do it, such innovations will move to other countries where they are accepted.

The Hand of Michael Saylor in the Bill

Again, Lummis said the legislation looks to decisively define the duties of the two current regulators. The regulators are the US SEC and the CFTC. The bill promotes the current regulations about cryptocurrencies without creating new ones or regulators.

The Senator’s top advisor, Michael Saylor, is the founder and CEO of MicroStrategy. She said he was among the first set of people to see and examine the bill. He has years of experience in regulatory advocacy, cryptocurrencies, as well as investment.

Saylor, however, in an interview with Lex Fridman, did not differentiate stocks from cryptocurrencies. He equally stated that Bitcoin is the same as securities.