Crypto Regulation: U.S. Senator Lummis Wants Hands-Off Approach From Congress

Crypto Regulation: U.S. Senator Lummis Wants Hands-Off Approach From Congress

Crypto regulation is still a hot topic in Congress. Talks of putting regulations are still underway in the House. With either side trying to swing the consensus for or against crypto. One of the senators who wants favorable crypto regulation is Senator Cynthia Lummis. Lummis has always been vocal about her support for cryptocurrencies. The Senator sees a lot of applications for digital assets in the space. But there is still a long way to go before the future Lummis envisions can be established.

Nevertheless, Lummis has held her ground on favorable regulations for crypto. The senator’s native state Wyoming has the most favorable crypto laws in the entire country. It is home to crypto banks. These are special-purpose depository institutions, or SPDIs (“speedy”), institutions that hold cryptocurrencies alongside fiat. Wyoming has been at the forefront of crypto adoption in the U.S. With crypto being used as an alternative store of value. While also being used to diversity the economy.

“The bigger it gets and the more it stays outside the financial system, something goes wrong, there’s a run on crypto or elsewhere in the economy, I don’t want the U.S. taxpayer to be the one that gets called on to back this up,” Lummis told Bloomberg in an interview.

Lummis Wants Hands-Off Approach

Crypto laws in Wyoming are what is classified as hands-off.” The state exempts digital currencies from property taxations, and Lummis wants Congress to emulate this approach when passing crypto regulation. Since crypto is still in its early stages, regulations that are passed now would either allow for growth or stifle its growth completely.

When the infrastructure bill was tabled in the House, Lummis, along with two other senators, had tried to change a provision in the bill. The provision in the $550 billion bill would see taxes raised due to the requirement of cryptocurrency exchanges to report trade information to the IRS. The amendment would see crypto miners spared 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 for tax avoidance. And while the amendment did not pass, it showed Lummis’ continued effort to make sure that regulations being passed in the House would be favorable for crypto.

Rooting For The Future With Bitcoin

Senator Lummis had first gotten into cryptocurrencies after her daughter and son-in-law mentioned it. Although skeptical at first, the senator soon came to see the usefulness of digital currencies. Lummis had bought her first Bitcoin at this point for $330. An investment which she has further topped up with an additional 4 bitcoins purchase. Bringing the total of her holdings to around $250,000.

Back in July, the senator had expressed concern for the current rate of inflation in the country. Bitcoin was then proffered as a solution to this by Lummis. At the interview, Lummis suggested that bitcoin had arrived at just the right time. And the digital currency would be able to help prop up the U.S. dollar to fight against inflation.