Senator Cynthia Lummis, a rancher and Republican Senator from Wyoming, introduced a sweeping and sweeping bill on bitcoin and crypto regulations. The RFI (Responsible Financial Innovation) Act was promulgated on June 7 by the Senator along with Kristen Gillibrand, a New York securities attorney and Democratic Senator.
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According to Lummis, the bill will lead to the introduction of cryptocurrencies into the traditional financial system. This allows the digital currencies to be accepted as commodities.
Clear distinction between Bitcoin and other commodities
The senator stated that by promoting the crypto law ahead of its implementation, he will introduce an amendment when the law goes into effect. She said there is a clear distinction between equities, commodities, cryptocurrencies, stablecoins, collectibles and NFTs.
In addition, the case of unique classification of securities and commodities is determined by Bitcoin, since it possesses the most possibilities of any commodity.
BTC is moving sideways on the daily chart. Source: BTCUSD trade view
Additionally, due to the demand for a scarce virtual asset with a global macro price association with the price of energy, Bitcoin has a strong resemblance to a commodity in its volatility. Also, Bitcoin’s inflation is caused by complex rigs that enable BTC token mining programs that anyone can download.
In a recent interview, Sen. Lummis was asked for her opinion on the SEC Chairman’s stance on digital currencies as securities. She responded by saying that she agreed with his view.
Also, Lummis noted that the top two cryptos, Bitcoin and Ethereum, are not considered securities. The senators even added that the CFTC (Commodities Futures Trading Commission) should regulate them, as reported by Market Watch.
This news is no small step, but the result of long hours of consultation with mining and industry officials to create legislation. Lummis said she hopes this proposal bridges tight regulation while not stifling progress.
Lummis assured that there is no need to worry as there is no need to over-regulate Bitcoin. If they try this, the innovation of the asset will spread to other countries where they will find more acceptance.
Michael Saylor’s Legislative Involvement
Another thing she explained was that the legislation would clearly outline the obligations of the two current regulators. These regulators include the CFTC and the US SEC (Securities and Exchange Commission). It extends the existing cryptocurrency regulations without introducing new regulators.
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Senator Lummis’ lead advisor is Michael Saylor, MicroStrategy’s founder and chief executive officer. She explained that he was one of the first people to see the bill due to his years of experience in crypto regulatory advocacy, investing and cryptocurrencies.
In an interview with Lex Fridman on his Tech and Science show, the MicroStrategy boss refused to differentiate digital currencies from stocks. He also explained that Bitcoin and securities are not the same.
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