Senator Cynthia Lummis, a prominent Bitcoin advocate, is currently working on drafting regulations for stablecoins, a type of cryptocurrency that is pegged to real-world assets in order to maintain a stable price. She has been collaborating with Senator Kirsten Gillibrand on a bill to provide regulatory clarity for stablecoins and protect investors. According to reports, they are planning to announce the news officially after receiving positive feedback from various stakeholders.
The New York Department of Financial Services, the Federal Reserve, Treasury, and the National Economic Council have all provided technical assistance for the Senate version of the bill.
This is not the first time Lummis and Gillibrand have worked on cryptocurrency-related legislation. In 2013, they announced a joint effort to reintroduce legislation aimed at establishing a comprehensive regulatory framework for digital assets.
Lummis, known for her pro-Bitcoin stance, has been a vocal supporter of the cryptocurrency in the United States. She even urged the government to embrace Bitcoin in 2021, highlighting its decentralized nature and lack of government control.
In addition to her advocacy work, Lummis has also been accumulating significant amounts of Bitcoin. She made purchases of BTC in batches of $50,000 and $100,000 in 2021.
Despite her support for Bitcoin, Lummis has expressed skepticism towards certain stablecoins, including Tether, which is currently the largest stablecoin by market capitalization. In 2023, she called for criminal charges to be considered against Tether amid allegations of illicit financial transactions. Tether responded to these requests by stating its commitment to being a compliant partner to U.S. regulators.
Lummis has also been vocal in her opposition to central bank digital currencies, arguing that they are undemocratic and enable financial censorship.
Overall, Lummis is actively involved in shaping the regulatory landscape for cryptocurrencies and stablecoins, aiming to ensure investor protection and regulatory clarity in the industry.