Bitrabo Editorial
In a recent discussion with CNBC, Senator Cynthia Lummis, a leading supporter of cryptocurrencies within the Republican Party, highlighted the likelihood of significant regulatory advancements after the approaching US elections.
With less than two months left until election day, Lummis underscored the necessity for a strong regulatory framework for digital assets that would bolster the US economy.
Lummis Calls for Congressional Action on Crypto Regulation
Although there have been important achievements, such as the launch of exchange-traded funds (ETFs) tied to major cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH), Lummis noted that the US remains behind the European Union, which has been less effective in its regulatory efforts.
The Senator pointed out that the EU began its regulatory initiatives in January 2023, warning that the US should not let other countries take precedence in financial services.
In light of recent comments from SEC Chair Gary Gensler about needing more protection for investors, Lummis contended that the SEC’s reliance on enforcement actions without clear regulatory frameworks has stunted the growth of the crypto sector.
She emphasized that Congress needs to take charge of the regulation, critiquing the SEC’s claims of being equipped for the task while choosing to file lawsuits against alleged wrongdoers instead of providing guidance under the Biden administration.
Lummis Discusses Gensler’s Position at SEC
Concerning Gensler’s tenure at the SEC, Lummis mentioned that if Donald Trump were to return to office, he has indicated he would dismiss Gensler right away. However, she was unsure about Gensler’s future should Kamala Harris win the presidency.
On the topic of a potentially split Congress, where the House might be Democratic and the Senate Republican, Lummis showed hope that a Republican-led Senate could be more favorable for digital assets.
She noted that if Tim Scott were to chair the Banking Committee, it would create a stronger push for a comprehensive legal framework for digital standards, contrasting with the current leadership of Sherrod Brown.
In line with her proposals, Lummis has actively worked on legislation to secure the US’s standing in the cryptocurrency field. She recently introduced a bill on July 31 to establish a “Strategic Bitcoin Reserve,” aimed at guiding the US Treasury to acquire one million Bitcoins over five years, similar to the Strategic Petroleum Reserve. Lummis believes that such a major Bitcoin acquisition could improve the value of the US dollar and help manage the national debt, which is currently at $35 trillion.
As of this writing, Bitcoin has surged to $66,000, marking its highest value in over two months after a significant 12% increase in September.
Featured image from DALL-E, chart from TradingView.com