In a recent interview with CNBC, Republican Senator Cynthia Lummis, a notable advocate for crypto assets, delved into the potential for significant regulatory changes following the upcoming US elections. With just under two months until voters head to the polls, Lummis emphasized the urgent need for a robust digital asset framework to support and advance the US economy.
Lummis Urges Congress to Take Lead in Crypto Regulation
While highlighting the progress made so far, including the approval of crypto exchange-traded funds (ETFs) that invest directly in major cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH), Lummis noted that the US still lags behind the European Union’s regulations. The Senator pointed out that the EU began implementing its regulatory framework as early as January 2023, and she expressed concerns about the US trailing other nations in financial services.
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Commenting on recent statements made by Securities and Exchange Commission (SEC) Chair Gary Gensler, who stressed the need for further investor protection in the crypto industry, Lummis argued that the SEC’s current approach—characterized by enforcement actions rather than clear regulatory guidance—has stifled the growth of the crypto sector. She asserted that Congress should take the lead in regulating this innovative sector, criticizing the SEC for its reliance on legal actions against alleged bad actors under the current administration.
Lummis Questions Gensler’s Future at SEC
Regarding Gensler’s future at the SEC, Lummis mentioned that if former President Donald Trump were to be reelected, he intends to fire Gensler immediately. However, she was less certain about Gensler’s fate should Kamala Harris win the presidency. Discussing the prospect of a divided Congress—where the House could remain Democratic and the Senate Republican—Lummis expressed optimism that a Republican-controlled Senate would be more advantageous for digital assets.
The Senator highlighted that Tim Scott’s potential chairmanship of the Banking Committee would lead to a stronger push for a statutory framework for digital assets, contrasting this with the current leadership under Sherrod Brown. This leadership change, she believes, could foster a more favorable environment for the growth and regulation of digital assets in the US.
Lummis’s Legislative Efforts to Strengthen US Crypto Position
Senator Lummis has been actively proposing legislation to solidify the US position in the crypto space. On July 31, she introduced a bill to establish a “Strategic Bitcoin Reserve” program. This initiative would direct the US Treasury to acquire one million Bitcoins over five years, drawing a parallel to the Strategic Petroleum Reserve. Lummis believes that such a substantial Bitcoin accumulation could reinforce the value of the US dollar and play a crucial role in addressing the national debt, which currently stands at $35 trillion.
The 1D chart indicates that BTC’s price is trending upward, reflecting a positive market sentiment. At the time of writing, the largest cryptocurrency on the market has climbed to $66,000 for the first time in over two months, following a substantial 12% rise in September.
As the US heads into a pivotal election period, the future of crypto regulation remains a hot topic. With advocates like Senator Lummis pushing for comprehensive frameworks, the coming months could usher in significant changes for the digital asset landscape in the United States.
