Keywords: Bitcoin, Senator, Cynthia Lummis
- Republican senator Cynthia Lummis is all-praise for Bitcoin.
- She believes education and regulation are important for Bitcoin adoption.
- Bitcoin may be among the rare things that brings Rs and Ds together.
Bitcoin is unstoppable; and no government can control it
Crypto journalist Natalie Brunell interviewed Wyoming Senator Cynthia Lummis regarding Bitcoin and its future and the legislation she is proposing along with other like-minded senators. The Republican senator spoke highly of the digital asset. She spoke on adoption, regulatory issues and its macroeconomic significance.
Lummis said Bitcoin conceptually resonated with her since she belonged to an Oil and Gas mining-state. While serving as the state treasurer of Wyoming, she had considered Bitcoin as an asset for investment since its “scarcity will continue to allow it to hold its value.”
Speaking on Bitcoin as an alternate currency, she said “I love that it can’t be stopped; especially because I’m concerned about our national debt, I’m also concerned about inflation”
“It’s actually comforting to know that BTC is there.” She added.
The senator explained that BTC is important for people of ‘modest means’ in the US and even overseas; BTC serves well as a store of value in those countries where governments are unstable ‘since a government cannot take away BTC’ unlike physical money.
Acelerating Bitcoin adoption
Senator Lummis along with Senator Kyrsten Sinema (D-Arizona) created the ‘Financial Innovation Caucus’ which is used to educate Senate staffers on cryptocurrency. She is also working with Senator Kirsten Gillibrand (D-New York) ‘on a bill to bring more regulatory clarity.’
As part of an educational drive, several personalities deeply associated with Cryptocurrency give talks at the senate. She explained that senators are found believing that crypto is an asset used for fraud and crime; and when people from companies like Chainanalysis, which solve those crimes give talks, it gives them a comfort level.
“Great speakers like Kevin O’leary from Shark Tank have established some relationships in the US senate and other people as well.” She added.
Lummis argued ‘that cryptocurrency is not partisan’ which allows her to work with people with completely differing views. She mentioned that she works with a lot of democrats ‘who are much more liberal and progressive than I am.’
Lummis believes that people will become receptive to BTC once they understand it. She reasoned that some policy makers feel threatened by BTC because they think it is out of government control.
Taxation, regulations and Ethereum
Answering Burnell’s question on the size of the transaction that would be taxed, Lummis revealed that the ‘de minimus’ (the amount of transaction which is exempted from taxation) amount was not clear yet; that there was a difference of opinion with the Treasury. She added that the public could weigh in on it and examples from other countries like Australia where the amount is 10,000 could also throw light on the matter.
Lummis explained that regulatory clarity would greatly benefit BTC since that will get rid of ‘bad actors’ and fraudulent alt coins from the eco-system. She emphasized on the role of SEC in policing the eco-system. The senator claimed that ‘regulation is actually good for BTC because among all the currencies, BTC is going to emerge as the gold standard.’
Speaking on Ethereum and its future, Limmus opined that Gary Gensler whose ‘voice is going to be important in this administration,’ may be assessing the Merge and its impact on the characteristics of Ethereum; and considering the Howey test as well.
Bitcoin and Macroeconomics
Limmus is surprised that BTC ‘has responded with other aspects of economy. I would have expected it to decouple from other aspects of the economy.’ she added that further rate hikes from the Fed may accelerate the decoupling of BTC from other aspects of the economy. She argued that while it may be volatile, it was a great store of value.
‘Some of the systems that coders are developing to perfect it as a means of exchange can occur.’ She added.
With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.