Cynthia Lummis is working on a Procrypto regulatory framework that aims to bring order to the ecosystem without slowing down innovation.
On May 3rd, US Senator Cynthia Lummis (RWY) was interviewed by the Axios news outlet and revealed key details about the crypto bill she hopes to introduce before the end of the year.
Lummis says the bill adjusts the legal framework so that both cryptocurrencies and traditional assets are regulated the same way.
For example, Bitcoin is a commodity. Therefore, for trading purposes and the spot market and futures market, it would fall under the Commodity Futures Trading Commission. And then if something satisfies the Howey test, making it secure, it would fall under the Securities Exchange Commission.
The Bill Won’t Curb Crypto Innovation
Lummis believes that the crypto industry, which carries more than 1.8 trillion dollars, must have a regulatory framework that defends users without curbing innovation. She believes that the crypto space is truly amazing.”
Additionally, Lummis stressed that the absence of guidance from Congress on the issue of cryptocurrencies and decentralized technologies has led to regulatory agencies, such as the SEC, having to make decisions on the fly. This should revise once this law is passed.
Non-fungible Tokens (NFTs) Will Not be Debated in The Bill
Lummis said that the reason to not include NFTs in the bill is that it’s so hard to figure out how to organize them. However, she expects regulatory agencies to help understand where these latest digital assets should fit in.
After there is more understanding about this type of technology and how it works, it will be feasible to know which NFTs should or should not be regulated. Unlike cryptocurrencies, NFTs are sold as if they were unique works of art whereas others seem to work as utility tokens.
Therefore, although this bill does not have identical option intentions to the one promoted by El Salvador, it is being handled so thoughtfully that it could probably serve as a driving force for many other countries to regulate cryptocurrencies.