Crypto regulations: US Senator Lummis wants a congressional-free approach
The regulation of crypto is always a hot topic in Congress. Discussions about putting in place regulations are still ongoing in the House. With each side trying to tip the consensus for or against the crypto. One of the senators who wants favorable crypto regulation is Senator Cynthia Lummis. Lummis has always expressed his support for cryptocurrencies. The senator sees a lot of applications for digital assets in space. But there is still a long way to go before Lummis’ future visions can be established.
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Nonetheless, Lummis has held firm on crypto-friendly regulations. The senator’s home state of Wyoming has the most favorable crypto laws in the country. It houses crypto banks. These are specialized depository institutions, or SPDI (“speedy”), institutions that hold cryptocurrencies alongside fiat. Wyoming has been at the forefront of crypto adoption in the United States, with crypto being used as an alternative store of value. While also being used to diversify the economy.
“The bigger it gets the longer it stays out of the financial system, something’s wrong, there’s a race in crypto or elsewhere in the economy, I don’t want the US taxpayer to be the one called upon to support that, ”Lummis told Bloomberg in an interview.
Lummis wants a hands-off approach
Wyoming’s crypto laws are what is classified as hands off. The state exempts digital currencies from property tax, and Lummis wants Congress to emulate that approach when passing crypto regulations. Since crypto is still in its infancy, regulations passed now would either allow for growth or stifle it altogether.
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When the infrastructure bill was introduced in the House, Lummis, along with two other senators, attempted to amend a provision of the bill. The $ 550 billion provision of the bill would result in increased taxes due to the requirement for cryptocurrency exchanges to report trade information to the IRS. The amendment would prevent crypto miners from having to report to the IRS. Citing the lack of adequate information as the reason.
The opposition argued that this amendment would create loopholes that would allow tax avoidance. And while the amendment did not pass, it showed Lummis’ continued efforts to ensure that regulations passed in the House would be crypto friendly.
Rooting for the future with Bitcoin
Senator Lummis got into cryptocurrency after her daughter and son-in-law mentioned it. Although skeptical at first, the senator quickly understood the usefulness of digital currencies. Lummis had bought his first Bitcoin at this point for $ 330. An investment that she completed with an additional purchase of 4 bitcoins. Bringing his total holdings to approximately $ 250,000.
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Last July, the senator expressed his concern about the current rate of inflation in the country. Bitcoin was later offered as a solution to this by Lummis. During the interview, Lummis suggested that bitcoin had arrived at just the right time. And digital currency could help prop up the US dollar to fight inflation.
Featured image from Algemeiner, chart from TradingView.com