Senator Cynthia Lummis, a prominent supporter of Bitcoin (BTC), is currently working on legislation to regulate stablecoins, a type of cryptocurrency that is tied to real-world assets in order to maintain a stable value. She has been collaborating with Senator Kirsten Gillibrand for several months on this bill, with the goal of providing regulatory clarity and investor protection.
According to a report from Axios, which cites spokespeople from Lummis and Gillibrand’s offices, the senators plan to make an official announcement about the legislation soon, as they have received positive feedback from various stakeholders. The New York Department of Financial Services, the Federal Reserve, the Treasury, and the National Economic Council have all provided technical assistance for the Senate version of the bill.
This is not the first time that Lummis and Gillibrand have worked on cryptocurrency-related legislation. In July 2013, they announced a joint effort to reintroduce a bill that aimed to establish a comprehensive regulatory framework for digital assets.
Lummis has gained recognition as a pro-Bitcoin lawmaker in the United States, having advocated for Bitcoin multiple times before the U.S. government. In October 2021, she expressed gratitude for Bitcoin when U.S. President Joe Biden approved an increase in the country’s debt limit. Lummis emphasized the decentralized nature of Bitcoin and its independence from government control, urging the government to embrace its potential.
Furthermore, Lummis has personally invested in Bitcoin, acquiring significant amounts of the cryptocurrency in batches of $50,000 and $100,000 in 2021. However, despite her support for Bitcoin, she has recently expressed skepticism towards certain stablecoins, including Tether (USDT), which is currently the largest stablecoin by market capitalization and the most traded cryptocurrency.
In October 2023, Lummis joined a campaign against Tether, requesting the U.S. Justice Department to consider criminal charges against the stablecoin firm due to allegations of illicit financial transactions. Tether responded to these requests by expressing its willingness to cooperate with U.S. regulators.
More recently, Lummis has been vocal in her opposition to central bank digital currencies (CBDCs), arguing that they are undemocratic and enable financial censorship.
Overall, Senator Cynthia Lummis continues to play a significant role in shaping cryptocurrency legislation in the United States, particularly in relation to stablecoins.