Wyoming rancher Cynthia Lummis introduced a broad and extensive bill on Bitcoin and Crypto Regulations. On June 7, the RFI Act (Responsible financial Innovation) was published.ThBy the Senator along with Kristen Gillibrand (a New York-based securities lawyer) and Democrat senator.
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Lummis claims that the bill would allow cryptocurrency to be adopted into the financial system. This will allow digital currencies to be accepted as commodities.
Clear distinction between Bitcoin and other commodities
She explained that the senator had promoted the crypto bill in advance of its deployment. However, if it becomes law, the change will be introduced. There would be clear distinction between securities, commodities and cryptocurrencies.
Bitcoin will also determine the classification of commodities and securities, since it has the highest probability of becoming a commodity.
Bitcoin’s volatility is also very similar to that of a commodity due to its demand for scarce virtual assets with an worldwide price correlation with the energy price. Also, Bitcoin’s inflation is caused by complex rigs that facilitate BTC token mining programs that anyone can download.
In a recent interview, Sen. Lummis was asked about her view of the SEC chairman’s stance on digital currencies being securities. Lummis replied that she shared his views.
Also, Lummis noted that the two leading cryptos, Bitcoin and Ethereum, aren’t considered securities. Market Watch reports that Senators added the CFTC to regulate them.
This news isn’t a little step but a product of long hours of consultation with mining and industry reps to create legislation. Lummis stated that she hopes this proposal bridges a concise regulation and, at the same time, doesn’t suffocate advancement.
Lummis reassured that there isn’t a need to worry, as it’s not needful to overregulate Bitcoin. If they try to do so, innovation of the asset will transition to other countries where it’s more accepted.
Michael Saylor’s Involvement In The Legislation
A second thing that she said was that the legislation would outline clearly the obligations of the current regulators. The CFTC and US SEC (Securities and Exchange Commission) are these regulators. The new regulations are based on existing regulations and do not introduce any additional regulatory entities.
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Senator Lummis’ leading advisor is Michael Saylor, the Founder and Chief Executive Officer of MicroStrategy. She explained that he was one of the first people who’d seen the proposed bill, given his years of experience in crypto regulatory advocacy, investment, and cryptocurrencies.
In an interview with Lex Fridman on his show “Tech and Science”, the MicroStrategy boss refused to differentiate digital currencies from stocks. Also, he stated that bitcoin and securities aren’t the same.
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