In a recent conversation with CNBC, Republican Senator Cynthia Lummis, a leading proponent of cryptocurrency, explored the potential for major regulatory reforms pending the upcoming US elections.
With less than two months until Election Day, Lummis underscored the necessity for a comprehensive digital asset framework to bolster the US economy.
Lummis Calls on Congress to Take the Lead in Crypto Regulation
Despite significant advancements, such as the approval of crypto exchange-traded funds (ETFs) that invest directly in key cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH), Lummis highlighted that the US is still trailing behind the somewhat ineffective regulations in the European Union.
The Senator pointed out that the EU initiated its regulatory framework implementation in January 2023. She expressed worry that the US has allowed other countries to spearhead developments in financial services.
In response to recent remarks made by Securities and Exchange Commission (SEC) Chair Gary Gensler this week, emphasizing the need for enhanced investor protections in the sector, Lummis contended that the SEC’s existing strategy—marked by enforcement actions rather than clear regulatory guidance—has impeded the crypto industry’s progress.
Lummis insisted that Congress ought to take charge of regulating this space, criticizing the SEC for its assertion that it has all the necessary tools while simultaneously pursuing legal actions against alleged wrongdoers under the current Biden administration.
Lummis Questions Gensler’s Future at the SEC
Regarding Gensler’s continued position at the SEC, Lummis remarked that if former President Donald Trump were reelected, he has expressed plans to remove Gensler immediately. However, she expressed uncertainty about Gensler’s future under a potential Kamala Harris administration.
When addressing the possibility of a split Congress—where the House might be led by Democrats and the Senate by Republicans—Lummis expressed hope that a Republican-controlled Senate would favor digital assets.
She noted that Tim Scott’s potential leadership of the Banking Committee would initiate a stronger call for a regulatory framework for digital assets, in contrast to the current leadership under Sherrod Brown.
This is happening as Lummis has been actively working on legislation to reinforce the US’s standing in the crypto domain. On July 31, she tabled a bill to establish a “Strategic Bitcoin Reserve” program.
This proposal would instruct the US Treasury to procure one million Bitcoins over a five-year period, drawing a parallel to the Strategic Petroleum Reserve. Lummis argues that such a considerable Bitcoin accumulation could strengthen the US dollar and significantly contribute to addressing the national debt, which currently exceeds $35 trillion.
As of this writing, the largest cryptocurrency has reached $66,000 for the first time in over two months, reflecting a notable 12% increase in September.
Featured image from DALL-E, chart from TradingView.com
