How will Cynthia Lummis’ proposed bill affect Bitcoin?
Senator Cynthia Lummis, a rancher and Republican senator from Wyoming introduced a comprehensive and sweeping account related to Bitcoin and crypto regulation. The RFI (Responsible Financial Innovation) bill was released on June 7 by the senator along with Kristen Gillibrand, a New York securities attorney and Democratic senator.
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According to Lummis, the proposed bill will lead to adoption of cryptocurrency in the traditional financial system. Thus, the digital currencies can be accepted as commodities.
Clear distinction between Bitcoin and other commodities
The senator explained that in promoting the crypto law before its enactment, if the bill is enacted into law, it will introduce a change. She said there would be a clear difference between securities, commodities, cryptocurrencies, stablecoins, collectibles and NFTs.
Moreover, the case of the separate classification of securities and commodities will be determined by Bitcoin as it has the most possibility of any commodity.
BTC is moving sideways on the daily chart. Source: BTCUSD trading summary
Moreover, Bitcoin bears a strong resemblance to a commodity in its volatility due to the demand for a scarce virtual asset with a global macro price association with the price of energy. Bitcoin’s inflation is also driven by complex rigs that enable BTC token mining programs that anyone can download.
In a recent interview, Senator Lummis was asked for her opinion on the SEC chairman’s stance on digital currencies as securities. She responded by saying she agreed with his opinion.
Lummis also noted that the two leading cryptos, Bitcoin and Ethereum, are not considered securities. The senators even added that the CFTC (Commodities Futures Trading Commission) should regulate them, as reported by Market Watch.
This news is not a small step, but a product of hours of consultation with representatives from the mining and industry sectors to bring about legislation. Lummis says she hopes this proposal bridges the gap from a concise settlement while not stifling progress.
Lummis reassured that there is no need to worry as there is no need to over-regulate Bitcoin. If they try, the innovation of the asset will transfer to other countries where it is more accepted.
Michael Saylor’s involvement in legislation
Another thing she said was that the legislation would clearly outline the obligations of the two current regulators. These regulators include the CFTC and the US SEC (Securities and Exchange Commission). It promotes existing regulations for cryptocurrencies without introducing newer regulatory bodies.
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The leadership of Senator Lummis counselor is Michael Saylor, the founder and Chief Executive Officer of MicroStrategy. She explained that he was one of the first people to see the proposed law, given his years of experience in the advocacy of crypto regulation, investment and cryptocurrencies.
In an interview with Lex Fridman on his show “Tech and Science,” the MicroStrategy boss refused to distinguish digital currencies from stocks. He also stated that bitcoin and securities are not the same.
Featured image from The Pexels, chart from TradingView.com