Senator Cynthia Lummis, a strong advocate for Bitcoin, is currently working on regulations for stablecoins, a type of cryptocurrency that is tied to real-world assets to maintain a stable price. She has been collaborating with Senator Kirsten Gillibrand for several months on a bill that aims to provide regulatory clarity for stablecoins and protect investors, according to a report from American news agency Axios.
The report states that Lummis and Gillibrand are planning to officially announce the news soon, as they have received positive feedback from various stakeholders. The New York Department of Financial Services, the Federal Reserve, Treasury, and the National Economic Council have provided technical assistance on the Senate version of the bill.
This is not the first time Lummis and Gillibrand have worked on cryptocurrency-related legislation. In July 2013, they announced a joint effort to reintroduce legislation that aimed to establish a comprehensive regulatory framework for digital assets.
Lummis has become a prominent figure in the pro-Bitcoin movement in the United States. She has advocated for Bitcoin before the U.S. government on multiple occasions. In October 2021, Lummis expressed her support for Bitcoin when U.S. President Joe Biden approved another increase in the country’s debt limit. She urged the government to embrace Bitcoin’s decentralized nature and emphasized that it is not controlled by any government.
Lummis has also made headlines for her personal investments in Bitcoin. In 2021, she purchased large amounts of BTC in batches of $50,000 and $100,000.
Despite her bullish stance on Bitcoin, Lummis has recently expressed skepticism towards certain major stablecoins, including Tether, which is currently the largest stablecoin by market capitalization and the most traded cryptocurrency. In October 2023, Lummis called for criminal charges to be considered against Tether, following reports of illicit financial transactions. Tether responded to lawmakers’ requests for action from the Department of Justice, stating that it aims to be a cooperative partner to U.S. regulators.
Lummis has also been vocal in her opposition to central bank digital currencies (CBDCs), arguing that they are “anti-democratic” and a form of financial censorship.
In conclusion, Senator Cynthia Lummis is actively working on regulations for stablecoins, aiming to provide clarity and protection for investors. She has a strong pro-Bitcoin stance and has been involved in drafting cryptocurrency-related legislation in the past. However, she has expressed concerns about certain stablecoins and central bank digital currencies.