Senator Cynthia Lummis, a rancher and Republican senator from Wyoming, submitted a comprehensive law governing Bitcoin and cryptocurrency. The Senator, along with Kristen Gillibrand, a New York securities attorney and Democrat senator, introduced the RFI (Responsible Financial Innovation) Act on June 7th.
The new bill, according to Lummis, will lead to cryptocurrency adoption in the existing financial system. As a result, digital currencies can be accepted as commodities.
The senator added that by pushing the crypto bill prior to its implementation, if the measure is passed into law, it will bring about a transformation. She stated that securities, commodities, cryptocurrencies, stablecoins, collectibles, and NFTs would be separated.
Furthermore, Bitcoin will determine the case of the distinct classification of securities and commodities, since it holds the highest possibility of a commodity.
Furthermore, Bitcoin’s volatility resembles that of a commodity due to the desire for a scarce virtual asset with a global macro price association with the price of energy. Furthermore, the inflation of Bitcoin is driven by elaborate rigs that facilitate BTC token mining tools that anyone may download.
Sen. Lummis was recently asked about the SEC chairman’s opinion on digital currencies being securities in a recent interview. She replied that she agreed with his point of view.
Furthermore, Lummis stated that the two most popular cryptocurrencies, Bitcoin and Ethereum, are not considered securities. According to Market Watch, the Senators even suggested that the CFTC (Commodities Futures Trading Commission) should control them.
This is not a little step, but the result of many hours of engagement with mining and industry representatives to develop legislation. Lummis noted that she thinks this suggestion spans a succinct regulation while not suffocating advancement.
Lummis informed that there is no reason to be concerned because overregulation of Bitcoin is unnecessary. If they try, the asset’s innovation will shift to other countries where it is more widely recognized.
She also added that the legislation would clearly define the obligations of the two current regulators. The CFTC and the US SEC are two of these regulators (Securities and Exchange Commission). It advances existing cryptocurrency legislation without adding any new regulatory organizations.
Michael Saylor, the Founder and CEO of MicroStrategy, is Senator Lummis’ primary advisor. She explained that because of his years of experience in crypto regulatory advocacy, investing, and cryptocurrency, he was one of the first to view the proposed bill.
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