Senators Lummis and Gillibrand Collaborate on Stablecoin Regulations
Summary:
Cynthia Lummis, a pro-Bitcoin U.S senator, is working alongside Senator Kirsten Gillibrand on regulations for stablecoins to provide regulatory clarity and protect investors. This collaboration marks their second effort in crafting continuous legislation related to cryptocurrencies. Despite Lummis’ known enthusiasm for Bitcoin and skepticism towards certain stablecoins, she remains a critical voice opposing central bank digital currencies, seeing them as potentially anti-democratic and tools for financial censorship.
Cynthia Lummis, a senator with a pro-Bitcoin (BTC) stance, is in the process of formulating regulations for stablecoins, a specific category of cryptocurrency anchored to tangible assets to maintain a consistent price. Working side by side with Senator Kirsten Gillibrand, Lummis has put several months into developing a legislation designed to instil regulatory transparency around stablecoins and safeguard investors, as put forth by Axios, a U.S. news outlet, on March 7. Drawing upon the words of representatives from both Lummis and Gillibrand's offices, the senators look forward to an official announcement following promising feedback from an array of stakeholders. Experts from organizations such as the New York Department of Financial Services, the Federal Reserve, the Treasury, and the National Economic Council have offered technical support for the Senate edition of the regulation, as stated in the report.
Regarding the venture into crafting policies around stablecoin, this wouldn't serve as a first-time experience for both Lummis and Gillibrand. They had previously made a collaborative attempt in July 2013 to reintroduce a bill targeting the establishment of a robust regulatory structure for digital assets.
Having established herself as an outspoken pro-Bitcoin legislator within the United States, Lummis has consistently promoted Bitcoin in front of the U.S. government. For instance, in October 2021, she implored the U.S. government to express gratitude for Bitcoin just as President Joe Biden approved an increase in the national debt limit. She further appealed to the government to leverage Bitcoin’s decentralized framework which is immune to government control.
Known for holding a significant Bitcoin portfolio, Lummis made asset purchases ranging from $50,000 to $100,000 worth of BTC in 2021. While staying optimistic about Bitcoin, Lummis has recently expressed doubts about some high-profile stablecoins such as Tether (USDT), which currently holds the highest market capitalization and trading volumes among cryptocurrencies.
In October 2023, Lummis threw her support behind a large-scale campaign aimed at Tether, urging the U.S.’ Justice Department to contemplate criminal allegations against the stablecoin company owing to accusations of illicit financial transactions. Tether then responded by expressing its commitment to establishing a world-class partnership with U.S. regulators.
Additionally, Lummis has fiercely criticized central bank digital currencies of late, suggesting that they are against democratic principles and could serve as a tool for financial censorship.
Published At
3/8/2024 1:22:06 PM
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