US senators Lummis, Gillibrand reveal working on bipartisan crypto legislation

Published at: March 25, 2022

United States Senator from New York Kirsten Gillibrand revealed working with Senator Cynthia Lummis on a broad-based regulatory framework for the crypto industry on Thursday during a live event in Washington, D.C. 

As Gillibrand specified, she and Lummis are undertaking “a very complex and intensive review” of different aspects of the industry, with a future regulatory task-sharing in mind. The framework will see both the Commodity Futures Trading Commission (CFTC) and Securities and Exchange Commission (SEC) get their share of a regulatory mandate.

Speaking of her and Lummis’ motivations for taking up the initiative, Gillibrand said:

“Many of the goals that Sen. Lummis and I have are identical — we want to address things like safety and soundness, we want to address consumer protection, we want to address certainty for markets.”

The symbolic importance of the Lummis-Gillibrand initiative is hard to overstate. In recent months, digital assets have been increasingly politicized, with some observers fearing that it could eventually become a divisive partisan issue.

Related: Democrat division over crypto isn’t all bad news for regulation

Senator Lummis gained a reputation as a staunch advocate of financial innovation, while Senator Gillibrand has largely refrained from articulating her stances on digital currencies until recently.

Back in December 2021, Lummis announced the introduction of a crypto bill that would provide regulatory clarity on stablecoins, offer consumer protection and categorize different digital assets. Along with the announcement, she issued a call for bipartisan cosponsors, which, as can be told now, has caught the attention of Senator Gillibrand. 

The bipartisan legislative push comes weeks after U.S. President Joe Biden signed his executive order on digital assets, directing a number of federal agencies to produce a series of reports on digital assets.

Tags
Regulation
Bitcoin Regulation
Cryptocurrencies
Law
Us Government
Congress
Senate
Usa
Related Posts
Crypto’s regulatory fate will be decided in the year ahead
It would be ideal for the industry for Congress to weigh in on its fate rather than leaving it to unelected regulators at the Securities and Exchange Commission (SEC). To that end, representatives from both sides of the aisle have introduced bills designed to offer “regulatory clarity.” The moderate position seems to favor placing crypto mostly under the jurisdiction of the Commodity Futures Trading Commission (CFTC). To be sure, there are two Senate bills in particular that are not ideal. Boozman-Stabenow lacks clarity Democratic Senate Agriculture Committee Chairwoman Debbie Stabenow has coauthored one proposal with Republican Sen. John Boozman. With …
Regulation / Dec. 19, 2022
Senate hearing on stablecoins: Compliance anxiety and Republican pushback
On Dec. 14, the United States Senate Banking, Housing and Urban Affairs Committee held a hearing titled “Stablecoins: How Do They Work, How Are They Used, and What Are Their Risks?” The testimonies, both spoken and written, focused largely on the last two issues, as anxieties over Know Your Customer compliance and the U.S. dollar inflation threat dominated the discussion. Held less than a week after the House of Representatives Financial Services Committee’s hearing on digital assets, which was generally perceived as “constructive”, the meeting held by the Banking Committee was expected to be tough. Senator Sherrod Brown, a Democrat …
Regulation / Dec. 17, 2021
Early birds: U.S. legislators invested in crypto and their digital asset politics
According to some estimates, as many as 20% of Americans were invested in cryptocurrencies as of August 2021. While the exact number can vary significantly from one poll to another, it is clear that cryptocurrencies are no longer just a niche passion project for tech enthusiasts or a tool for financial speculation. Rather, digital assets have become a widespread investment vehicle with the prospect of becoming mainstream. Optimistic as that is, this level of mass adoption still does not enjoy a commensurate political representation, with senior United States politicians largely lagging behind the curve of crypto adoption. This makes the …
Regulation / Jan. 18, 2022
Warren’s battle to curtail crypto gets boost from Ukraine conflict
In a July 2021 interview, Massachusetts Senator Elizabeth Warren likened crypto regulation to the drug regulation initiatives of a century ago, which she claimed put an end to the sale of “snake oil” and laid the basis for the creation of the modern drug industry. This reflected her earlier statements about the digital currency market resembling the “Wild West,” which makes it a poor investment as well as an “environmental disaster.” With her latest bill in the Senate pipeline targeting Russian actors’ potential use of crypto to circumvent United States sanctions, it is fair to ask: Is the military conflict …
Regulation / April 1, 2022
The crypto industry can trust Cynthia Lummis to get regulation right
As the world waits to see America’s take on cryptocurrency regulation, crypto enthusiasts should keep one thing in mind: The industry can trust Senator Cynthia Lummis. Her proposal with Senator Kirsten Gillibrand, which we’ve all been waiting for action on, is bipartisan in nature. We’re still awaiting the final details, but things have slowed to a crawl with the November elections around the corner. United States Securities and Exchange Commission Chairman Gary Gensler has moved forward with commentary that suggests the Commodity Futures Trading Commission will take a major role in the oversight of Bitcoin (BTC), which, in and of …
Regulation / Sept. 19, 2022