Bitcoiner Senator, Cynthia Lummis, Is Planning to Bring In A New Crypto Bill Next Year

Bitcoiner Senator, Cynthia Lummis, Is Planning to Bring In A New Crypto Bill Next Year

Wyoming Republican Senator Cynthia Lummis plans to introduce a comprehensive bill next year covering tax taxation of digital assets and their categorization to consumer protections.

Lummis, who is also a Bitcoiner and one of the most vocal crypto advocates, will also be pitching Congress on creating a crypto regulatory body under the joint jurisdiction of the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) to oversee the digital asset market, as part of the digital asset policy bill.

If the bill is enacted, it would provide regulators with clear guidance on asset categorization, regulate stablecoins, and offer consumer protection.

As the crypto market goes mainstream, the regulatory scrutiny of the space has gone up as authorities around the world work on guidelines to regulate the sector.

FTX CEO Sam Bankman-Fried, however, doesn’t expect legislative action to be the immediate answer for “regulatory clarity” as it’s “pretty hard right now to get things through Congress.”

“There will be substantial fleshing out of the crypto regulatory systems over the next few years,” he told CNBC.

Meanwhile, Jeremy Allaire, CEO of Circle, the issuer of USDC stablecoin, says the biggest threat to crypto will be “incoherent and inconsistent, hastily formed regulations and policy.”

But he believes there is a bipartisan recognition that this new technology presents a competitive advantage to the US as such “laws will come quicker than many people expect.”

According to Brian Brooks, the former Acting Comptroller of the Currency, the level of innovation and activity in the space is too big to ignore. In 2022, “the need for clear regulatory action that creates a sustainable framework to allow crypto and Web 3 to grow in the United States will reach its tipping point.”

Meanwhile, in the UK, the advertising watchdog warned Arsenal over ads for its “fan tokens.” The Advertising Standards Agency (ASA) said earlier in the week that two ads posted by Arsenal in August were “misleading” as the risk of trading crypto, that they aren’t regulated in the region, and their potential tax implications were not made clear.

The agency has said that the ads must not appear in the same form again. “Cryptoassets are a red-alert priority issue for us,” a spokesperson said. “We won’t hesitate to take action against ads that break our rules.”

In other parts of the world, India, “The Cryptocurrency and Regulation of Official Digital Currency Bill, 2021″ which was expected to be discussed in the winter session of Parliament, which ended Dec. 22, was dropped in the final days of the session and won’t be coming until at least after April, next year.

The government reportedly “wants to hold wider consultations on the matter.”

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Author: AnTy

Wyoming Senator Cynthia Lummis Discloses Bitcoin Purchase Worth Up to $100k in Late Filing

Wyoming Senator Cynthia Lummis Discloses Bitcoin Purchase Worth Up to $100k in Late Filing

Despite being the most controversial digital asset in the nascent industry, Bitcoin is slowly gaining support in Washington. Reports coming from the Capital City states that Senator Lummis has recently increased her BTC holdings.

Lummis Buys BTC Worth $100K

U.S. Senator Cynthia Lummis, representing crypto-friendly Wyoming, recently disclosed her purchase of Bitcoin worth between $50,000 and $100,000.

According to a Periodic Transaction Report filed yesterday, Lummis made the purchase on August 16 after unsuccessfully trying to amend the Senate-passed crypto infrastructure bill. The purchase was made through her brokerage platform River Financial.

Lummis is a long-time crypto bull and has been swelling her Bitcoin holdings since 2013. According to the crypto enthusiast, she started buying Bitcoin when it traded for as little as $330.

However, her latest purchase has drawn criticism from several quarters largely due to the lateness of the filing.

According to the Stop Trading on Congressional Knowledge Act (STOCK), all serving senators and senior officials within the $119,554 pay bracket are meant to report specific financial transactions within a stipulated time.

The Senate ruling also demanded that all purchases, sales, or exchanges of any stock, bond, commodities futures must be disclosed within 45 days of the transaction.

When contacted by the media, a spokesperson to the Senator admitted that the oversight was due to a ‘filing error.’

“It was an honest mistake, and the issue has been resolved without penalty.”

The premier digital asset has drawn strong criticism from the White House, with Treasury Secretary Janet Yellen labeling it a tool for money laundering and terrorist financing. The Securities and Exchange Commission (SEC) Chair, Gary Gensler, has repeatedly called for more oversight as the industry sees more mainstream adoption.

Lummis No Friend To Stablecoins

Senator Lummis is not the only lawmaker with a crypto war chest in Congress, and Senator Pat Toomey of Pennsylvania also owns stakes in the rapidly-growing digital financial space.

Senator Toomey is reported to have purchased $15,000 worth of Grayscale’s Ethereum Trust (ETHE) and another $15,000 price of the famous digital asset management firm’s Bitcoin Trust (GBTC) in mid-June, according to data from Quiver Quantitative.

Meanwhile, Lummis has called for a more elaborate retirement fund for Americans while pointing out that cryptocurrencies may be a viable tool as concerns continue to grow around inflation.

Stablecoins are meant to reduce volatility issues surrounding crypto assets like Bitcoin by pegging their value to a national currency. Stablecoins have come under increasing criticism, with SEC’s Chair Gensler attributing them to poker chips.

According to the SEC boss, digital trading could hurt investors without proper regulatory oversight. One of the most criticized of the bunch has been Tether’s USDT which has been required by the New York Attorney General (NYAG) office to provide quarterly reports on USDT backing.

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Author: Jimmy Aki

Infrastructure Bill Amendment Calls for A Level Playing Field with TradeFi, Without Penalizing Crypto

Senator Cynthia Lummis (R- Wyo), Ron Wyden (D-Ore), and Pat Toomey (R-Pa) are behind the amendment proposal that integrates crypto into the financial system and protects American innovation while ensuring taxes are paid.

Crypto supporter Senator Cynthia Lummis (R- Wyo), along with Senator Ron Wyden (D-Ore) and Senator Pat Toomey (R-Pa), has filed an amendment to the bipartisan infrastructure bill. For approval, it would need to gain at least 60 votes in the Senate. Lummis, who is also a Bitcoiner since 2013 said,

“Digital assets are here to stay, and while more work needs to be done, the Wyden-Lummis amendment integrates them into the financial system while leaving room for innovation.”

The purpose of the amendment is to clear up confusion about what constitutes a “broker” for reporting information to the IRS. Also, the update aims to ensure the term excludes validators, hardware and software makers, and protocol developers. Wyden, chair of the Senate Finance Committee, said in a statement,

“Our amendment makes clear that reporting does not apply to individuals developing blockchain technology and wallets. This will protect American innovation while at the same time ensuring those who buy and sell cryptocurrency pay the taxes they already owe.”

If the changes are included in the final bill, that would be a big win for the crypto industry. The bill’s broad definition of “broker” includes entities that don’t have customers whose information is needed to be reported to the IRS. Toomey, a ranking member on the Senate Banking Committee, in a statement, said,

“By clarifying the definition of broker, our amendment will ensure non-financial intermediaries like miners, network validators, and other service providers — many of whom don’t even have the personal-identifying information needed to file a 1099 with the IRS — are not subject to the reporting requirements specified in the bipartisan infrastructure package.”

However, clarifying the provision would not affect the reporting requirements on crypto exchanges like Coinbase that operate on behalf of customers, which the crypto market participants have said they support. Brian Armstrong, Coinbase CEO said,

“Coinbase is happy to help customers fulfill tax obligations just like the rest of the financial services industry. We’ve been doing this for years, and issuing more 1099s is a great idea.”

Armstrong did argue that the bill imposes sweeping and unprecedented reporting requirements that will force exchanges and others to surveil their customer’s transactions in a more intrusive way than the rest of traditional finance.

“All we ask for is an even playing field with traditional finance that doesn’t penalize cryptocurrency unfairly,” he added.

Blockchain Association, a crypto trade association that works to change public policy at the federal level, said it supports the amendment, sensible reporting requirements consistent with those applied to traditional financial services, in a joint statement published with the crypto policy-focused nonprofit Coin Center, Square, Coinbase, and VC Ribbit Capital. The Blockchain Association said in its statement,

“The development of crypto, and financial innovation generally, has enormous potential for the American economy and the American people through increased job creation and GDP growth.”

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Author: AnTy

Senator-Elect Urges Treasury Secretary to ‘Engage with Industry” & Against ‘Hasty’ Wallet Regulations

U.S. Senator-elect from Wyoming, Cynthia Lummis, shares her “deep” concerns with the Treasury Department considering “a hasty rule” to govern the self-hosted digital asset wallets and the Bank Secrecy Act.

Ever since Coinbase CEO Brian Armstrong first tweeted last month about Treasury Secretary Steven Mnuchin planning on imposing new restrictions on businesses that interact with these self-hosted wallets like exchanges, the market has been abuzz with uncertainty and some fear.

As we reported a week ago, several US lawmakers also sent a letter to the Treasury Secretary, expressing their concern about these rumored regulations, saying they will “crush a nascent industry” and “hinder American leadership.”

Now, Bitcoin-friendly and holder Cynthia Lummis has come out in support of the crypto industry, calling for the Treasury to not be in a rush in “America’s battle for competitiveness with China and Russia for the future of finance.” She urged the Treasury to “realize the transformative effects of digital assets.”Lummis added,

“Rather than prematurely adopting a rule on this complex topic, Treasury should immediately begin a transparent process to engage with Congress and industry, building a consensus to drive America forward.”

Lummis has spoken with Secretary Mnuchin and “strongly pressed him for a better path forward.” Congress needs to weigh the competing policy issues that are at stake, she said. “Let the sunshine in, Mr. Secretary,” Lummis added.

Digital assets like Bitcoin, whose hallmark feature is to conduct transactions without intermediaries, promote “financial inclusion and freedom.” And “a rule adopted at this juncture would be a solution in search of a problem,” said Lummis.

Last week, the Financial Crimes Enforcement Network (FinCEN) also opened positions for two “Strategic Policy Officers” that will assist in providing advice and assist in developing policy responses to risks, threats, and challenges posed by digital assets.

The Block illustrated that these regulations could involve requiring crypto companies, as early as Friday, to report on the transactions larger than $10k to or from a self-hosted crypto wallet in a day. Market expert Matt Odell said,

“I already assumed they did this tbh. The concerns Armstrong and Davidson voiced seemed to expect much worse. Maybe the public concern helped. Very bullish if true.”

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Author: AnTy

“Bitcoin Is The ‘Backdrop’ To A Failing US Dollar,” Says Wyoming Senator-Elect

  • Wyoming U.S. Senate elect Cynthia Lummis backs Bitcoin as the backstop to a failing dollar.
  • She further looks to educate other Senate members on the innovation.
  • Wyoming is the benchmark state in blockchain and crypto adoption across the U.S.

Global economies continue dealing with the black swan event, the Corona Virus pandemic, which has seen governments pumping trillions of dollars into the economy to keep them afloat. However, analysts and experts in the field are worried about the effect this could have on the fiat currencies in use worldwide as inflation increases.

In case the systems fail, Cynthia Lummis, the first woman to be elected to the Senate from Wyoming, believes Bitcoin will be the ‘backdrop’ for the U.S. economy and is ready to educate the Senate on the technology.

In a recent interview on Peter McCormack’s What Bitcoin Did? Podcast, Lummis said,

“If we reach the point where we have overspent so much that things start crashing down, the black swan event occurs with regard to any fiat currency — whether it’s ours or yours or China’s or Japan’s — that there is a backstop available to every government in the world, and that backstop is Bitcoin.”

The election of a Bitcoiner to the Senate is just part of the state’s steps to promote crypto and blockchain adoption. In September, Wyoming regulators approved Kraken banking state license making it the first crypto bank across the U.S., then shortly added Avanti as the second-ever crypto ban in October.

Notwithstanding, the state regulators also allowed insurance companies to start investing in Bitcoin, and other cryptocurrencies on July 1, setting a benchmark for other states in the U.S. Lummis said in the podcast,

“It should not surprise anyone that Wyoming has become the leader in policy toward Bitcoin and creating state policies that has nurtured our ability to actually charter banks that can transact banking business in Bitcoin.”

She further wants to spread the Bitcoin gospel to other Senate members once the senators are sworn in this January. Lummis aims to educate the other senators on how Bitcoin can be used alongside the dollar in debt recovery and qualities to make the dollar stronger. With the U.S. national debt skyrocketing past $27 trillion, as of writing, Lummis believes it could be unsustainable in the coming future, but Bitcoin could offer a solution. Lummis said,

“I really want to use my time in the US Senate in part to help introduce the topic of Bitcoin.”

“Increase the understanding in the Senate about Bitcoin, what it is, what it does, how it can be an asset that can grow and develop as an adjunct, so basically develop alongside our fiat currency.”

She claims that Bitcoin’s set policies could do a better job than the Fed is doing as inflation spikes up, killing the dollar’s purchasing power. She stated in the podcast,

“In the case of US currency, inflation is baked into the Federal Reserve’s plan for the US dollar. So it’s no wonder that our buying power is eroded”

In her quest to bring Bitcoin adoption to Senate and the people, Lummis has appointed former Wyoming State Representative and co-chair of the Wyoming Blockchain Task Force, Tyler Lindholm as the state policy director of Wyoming.

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Author: Lujan Odera

Wyoming Elects Bitcoiner Cynthia Lummis to US Senate

Wyoming voters have elected former congresswoman and bitcoiner Cynthia Lummis to the US Senate.

Lummis will be the first member of the Congress’s upper chambers to own BTC, at least to declare so publicly, which she first bought in 2013.

Members of the House of Representatives, like the former chair of the Judiciary Committee Bob Goodlatte, have disclosed in the past that they own crypto but no US Senator, until now.

Meanwhile, Lummis’s home state is establishing as a haven for crypto businesses. The state has passed several crypto favorable laws and recently granted charters to two businesses to become crypto banks.

“In typical Wyoming fashion, we’re sending someone to D.C. who respects individual rights, and especially the right to keep the fruits of our labor. Cynthia believes in the philosophy behind Bitcoin, not just that it is a new asset class,” said Caitlin Long, the CEO of one of the crypto banks, Avanti Financial, in an interview.

She predicted that Lummis would advocate for the crypto industry and tweeted, “(Lummis) LOVES what Wyoming did in crypto—publicly said tonight that she wants to defend it against federal encroachment.”

Although the fast-growing crypto industry has got a bitcoiner on its side, the market, which is extremely excited, shouldn’t expect major changes to be coming anytime soon. The industry faces significant regulatory headwinds in the form of taxation and is seen as a vehicle for money-laundering.

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Author: AnTy

Bitcoin HODLer Cynthia Lummis Wins Senate Primary in Wyoming

Former Rep. Cynthia Lummis (R-Wyo.) has won the first round of the US Senate race. On Tuesday, she won her state’s Senate GOP primary and is now one step closer to replacing retiring Sen. Mike Enzi (R).

Lummis, who served four terms in the House, will now be facing Merav Ben-David but is about guaranteed to fill the seat.

She is a bitcoin holder, which is no surprise given that her state of Wyoming is leading the US in integrating blockchain technology and cryptocurrency into the regulatory framework.

In an interview with CoinDesk, a few months back, she revealed that she continues to hold onto her first Bitcoin that she purchased in 2013 as she is a “HODLer.” Lummis has never sold and remains a buyer, as it is the way to protect her future.

An advocate of bitcoin, she believes in the current macro environment, “we need stores of value that are decoupled from the economy,” and that is bitcoin.

In the 21st century, where the central bank is printing money and declining the value of the US dollar, “cryptocurrencies may be on the uptick,” she said.

Unlike all the interest towards central bank-backed digital currencies, Lummis is very much clear on this very front as well as she explained how that is a matter of convenience instead of targeting being a store of value.

“As long as a dollar-based digital currency is backed by the full faith and credit of the U.S., as opposed to something more scarce, then I don’t think it can add value,” she said.

According to Nic Carter, co-founder of Coin Metrics, it is “amazing” that she believes in bitcoin and cryptocurrencies have given that “Cynthia is most likely going to be Wyoming’s new senator.”

“Anyone who thought that America wouldn’t eventually embrace Bitcoin is crazy. Bitcoin values and core constitutional American values have a lot in common,” he added.

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Author: AnTy