Pro-Bitcoin Senator Cynthia Lummis Drafting Stablecoin Regulations

Senator Cynthia Lummis is collaborating with Senator Kirsten Gillibrand to draft regulations for stablecoins, aiming to provide clarity and investor protection in the cryptocurrency market.

The Bill

• Purpose: The bill seeks to regulate stablecoins, cryptocurrencies pegged to real-world assets to maintain stable prices.
• Stakeholder Involvement: Feedback from various stakeholders has been positive, with technical assistance provided by the New York Department of Financial Services, the Federal Reserve, the Treasury Department, and the National Economic Council.

Legislative Background

• Previous Efforts: This is not the first time Lummis and Gillibrand are working on cryptocurrency-related legislation. In July 2013, they collaborated on legislation for a comprehensive regulatory framework for digital assets.

Lummis’s Stance on Bitcoin and Stablecoins

• Pro-Bitcoin Stance: Lummis has been a vocal advocate for Bitcoin, emphasizing its decentralized nature and its potential as a financial tool not controlled by any government.
• Concerns About Stablecoins: Despite her support for Bitcoin, Lummis has expressed skepticism about major stablecoins like Tether, calling for regulatory scrutiny and even suggesting criminal charges against Tether in October 2023.

Recent Activity

• Opposition to CBDCs: Lummis has also been critical of central bank digital currencies (CBDCs), arguing that they are undemocratic and could lead to financial censorship.

Conclusion

Senator Cynthia Lummis’s efforts to draft stablecoin regulations highlight the increasing regulatory focus on cryptocurrencies. Her pro-Bitcoin stance, combined with concerns about stablecoins and CBDCs, reflects the complex regulatory landscape surrounding digital assets.