Senator Lummis advocates stablecoin bill for Bitcoin

Senator Cynthia Lummis, an advocate for Bitcoin, is working on drafting regulations for stablecoins, a type of cryptocurrency that is tied to real-world assets to maintain a stable value. Lummis has been collaborating with Senator Kirsten Gillibrand to create a bill that aims to provide regulatory clarity for stablecoins and protect investors, according to Axios. The senators plan to announce the news officially once they receive positive feedback from various stakeholders.

To develop the Senate version of the bill, Lummis and Gillibrand’s team has received technical assistance from organizations such as the New York Department of Financial Services, the Federal Reserve, Treasury, and the National Economic Council. This is not the senators’ first experience with cryptocurrency-related legislation, as they previously worked together in 2013 to reintroduce a bill that aimed to establish a comprehensive regulatory framework for digital assets.

Lummis has been an influential figure in the United States when it comes to advocating for Bitcoin. In 2021, she urged the U.S. government to appreciate the benefits of Bitcoin’s decentralization after U.S. President Joe Biden approved a raise in the country’s debt limit. Lummis has also invested heavily in Bitcoin, purchasing significant amounts throughout the year.

Despite her support for Bitcoin, Lummis has become skeptical of certain stablecoins, including Tether, which is currently the largest and most traded cryptocurrency. In 2023, she supported a campaign against Tether, requesting that the U.S. Justice Department consider filing criminal charges against the stablecoin firm due to allegations of illicit financial transactions. Tether responded by expressing its desire to be a compliant partner to U.S. regulators.

Lummis has expressed strong opposition to central bank digital currencies (CBDCs), arguing that they are “anti-democratic” and a form of financial censorship. This stance further highlights her belief in the advantages of decentralized cryptocurrencies like Bitcoin.

With their ongoing efforts to regulate stablecoins, Lummis and Gillibrand aim to create a clear and protective framework for investors. By working closely with various stakeholders and government agencies, they hope to establish regulations that address the unique challenges and opportunities presented by stablecoins in the cryptocurrency market.