Latest Posts

How Will Cynthia Lummis’s Proposed Bill Affect Bitcoin

- Advertisement -


Senator Cynthia Lummis, rancher and Republican Senator from Wyoming introduced a comprehensive and comprehensive bill regarding the regulation of bitcoin and cryptocurrencies. The Responsible Financial Innovation Act was published on June 7th.th The senator, along with Kristen Gillibrand, a New York securities attorney and Democratic senator.

- Advertisement -

| Bitcoin Open Interest Falls As Price Drops Below $31,000

- Advertisement -

According to Lummis, the proposed bill will lead to the introduction of cryptocurrency into the traditional financial system. Thus allowing digital currencies to become commodities.

A clear distinction between Bitcoin and other commodities

- Advertisement -

The senator explained that while moving the cryptocurrency bill ahead of its rollout, if the bill is passed into law, it will make changes. She said there would be a clear distinction between securities, commodities, cryptocurrencies, stablecoins, collectibles and NFTs.

In addition, the case of separate classification of securities and commodities will be determined by Bitcoin as it has the greatest commodity capability.

How Cynthia Lummis' Proposed Bill Will Affect Bitcoin
BTC is moving sideways on the daily chart. Source: BTCUSD Trading Review

In addition, Bitcoin is very similar to a commodity in its volatility due to the demand for a scarce virtual asset with a global macro price association with the price of energy. In addition, Bitcoin inflation is caused by complex setups that make it easy to mine BTC tokens that anyone can download.

In a recent interview with Senator Lummis, she was asked about her take on the SEC chair’s position that digital currencies are securities. She responded by saying that she agreed with his point of view.

In addition, Lummis noted that the two leading cryptocurrencies, Bitcoin and Ethereum, are not considered securities. The senators even added that they should be regulated by the CFTC (Commodity Futures Trading Commission), according to Market Watch.

This news is not a small step, but the result of long hours of consultation with mining and industry representatives to develop legislation. Lummis said she hoped the proposal would complement the short time limit without stifling progress.

Lummis assured that there is nothing to worry about as there is no need to over-regulate Bitcoin. If they try to do so, the asset’s innovations will move to other countries where they are more acceptable.

Michael Saylor’s involvement in legislation

She also said that the legislation would clearly define the responsibilities of the two current regulators. These regulators include the CFTC and the US SEC (Securities and Exchange Commission). It advances existing rules for cryptocurrencies without introducing any new regulatory bodies.

| US macro pressure is responsible for the entire Bitcoin downtrend

Senator Lummis leads adviser Michael Saylor, founder and CEO of MicroStrategy. She explained that he was one of the first to see the proposed bill given his years of experience in advocacy for cryptocurrencies, investments and cryptocurrencies.

In an interview with Lex Friedman on his Tech & Science show, the MicroStrategy executive refused to distinguish digital currencies from stocks. He also stated that bitcoin and securities are not the same thing.

Featured image from The Pexels, chart from TradingView.com



Credit : www.newsbtc.com

- Advertisement -

Latest Posts

Don't Miss