Cynthia Lummis, a US Senator, gave her opinion on adopting and regulating crypto. On Wednesday, she made a critical tweet after the hearing on crypto by the Senate Banking Committee. She stated that major government spenders are doing much more to enhance digital asset adoption. She explained that the country’s currency is dropping in value, and it’s causing people to flee to digital assets. One such example is that of the flagship cryptocurrency, Bitcoin.
She reinstated her position, saying that the country needed to adopt a positive approach. According to her, spending the US deeper into a hole is undesirable. It’s an inflationary way to push people towards adopting digital currencies. She mentioned that she wants the USD to continue its position as the world’s reserve currency. Instead of pushing consumers, it’s important that the country lures in spending and encourage financial innovation in the country. This will protect the country’s status internationally.
In a recent interview with Fox Business, she was asked about the crypto regulation she’d prefer in the country. She began by talking about solid definitions. For her, the best result would be a ‘regulatory sandbox.’ That’s because it encourages an environment where people understand the rules and innovation as well.
Then, the interviewers asked how the crypto regulations she’s prompting will affect the popular cryptocurrency, Bitcoin. She reassured that they want Bitcoin to continue serving as a reliable store of value. She even explained what should happen if the situation becomes what El Salvador has done, which is legal tender. In that case, they need to ensure that crypto is used in ways that comply with legislation. This means anti-money laundering laws and the Bank Secrecy Act. Regardless, it needs to be used via legitimate means.
The interviewer then asked the senator from Wyoming if she held a bullish position on any crypto in particular. While her response didn’t imply a bullish attitude, it was definitely the answer of a smart investor. She replied that she owned some Bitcoin, but also highlighted that it was the only digital currency that she owned.
Her reason for owning Bitcoin is that it serves as a good store value, which is definitely smart. Unlike ambitious investors, she said that it will help when she retires. She mentioned that she is saving it so she has peace of mind upon retirement: “I’ll know it’s there.”
She explained that Bitcoin is the only digital currency that she understands because it works similar to actual currency. It is a good store of value according to her because only a specific number of tokens, 21 million, will be mined. She encouraged others to diversify their portfolio with Bitcoin as well.
