- Pro Bitcoin Senator Cynthia Lummis believes bitcoin is the only cryptocurrency that is here to stay in the longest term.
- The Senator cites Bitcoin’s decentralization as the major reason for choosing it over all other cryptos.
- Bitcoin has the first-mover advantage and is the largest cryptocurrency with a market capitalization of over $1 trillion.
Bitcoin’s most vocal supporter in the Senate has affirmed her belief in the asset over other cryptocurrencies. She goes on to air her opinion on the state of the proposed stablecoin legislation.
Bitcoin Is Here To Stay
Senator Cynthia Lummis in a recent interview with CNBC stated that Bitcoin is real and is here to stay. The Wyoming senator claims that Bitcoin is the “standard” given its nature and other cryptocurrencies do not measure up to it.
She goes on to state that Bitcoin is a commodity while other cryptocurrencies are securities because of how they were issued. She cites the decentralized nature of the network as a major point in its favor over other digital assets.
“I do think that Bitcoin is here to stay and I think a lot of the others are not,” Lummis said. “The fact that Bitcoin is fully decentralized and that some of the others were issued by a person or an entity that kept a large block of the coin for themselves and then issued others to participate means they look more like a security than a commodity.” She goes on to state that Bitcoin as digital gold is a commodity and not a security.
She goes on to advocate for stronger legislation for the crypto ecosystem to exist and innovate while simultaneously guaranteeing investor protection. She revealed that she is involved in the crafting of legislation that will encapsulate all the important issues.
Senator Lummis has been one of Bitcoin’s most vocal supporters in the Senate, famously offering displaced Chinese miners opportunities in Wyoming. A recent filing disclosed that she had bought $50K-$100K worth of BTC to increase her holdings of the digital asset. It was revealed that the Senator had made her first Bitcoin purchase back in 2013 while it was trading around $320 apiece.
Thoughts On Stablecoin Regulation
When quizzed on her thoughts about the state of stablecoin regulation in the industry, Lummis stated that if only FDIC-insured banks are allowed to participate, it could stifle innovation in the industry. She stated that community banks and “institutions that can fully back their stablecoins” should be allowed to thrive in the space.
She noted that current recommendations are a bit high-handed and could do with a bit more flexibility. Lummis disclosed in the interview that she is working on a framework that would cater to the needs of all of the market participants.
Early this week, the President’s Working Group on Financial Markets, the Federal Deposit Insurance Corporation, and the Office of the Comptroller of the Currency released their report on stablecoin. The report highlighted the risks, limitations and proffered increased Congress action as the way forward for stablecoins.
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