Crypto Industry Can Trust Cynthia Lummis to Get Regulation Right – Cointelegraph | Jewelry Dukan

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, is bipartisan in nature.

We’re still awaiting final details, but things have slowed with the November elections just around the corner. United States Securities and Exchange Commission Chairman Gary Gensler has provided comment suggesting that the Commodity Futures Trading Commission will play a major role in overseeing Bitcoin (BTC), which in and of itself is a movement of the Congress would require.

However, we do know a few things that are momentous. In particular, Lummis has said in interviews that she welcomes comments from the industry. This dialogue is essential to implement this legislation correctly.

“We designed [the crypto bill] So it works within the usual framework for traditional asset management and regulation,” Lummis said. “We will post it in draft form for discussion, and you have 30 days to help us make this bill the best it can be before you actually submit it.”

Related: Sen. Lummis: My proposal with Sen. Gillibrand empowers the SEC to protect consumers

There is no question that the industry needs more comprehensive guidance on how to deal with digital assets. Digital assets, including cryptocurrencies and stablecoins, deserve better oversight. Investors should be confident that they are following the same regulatory routine as securities or commodities, and know which commission is supervising them. Right now they’re stuck in limbo, which isn’t healthy for the industry.

Some in the industry think that all regulation is, by definition, a bad thing. But to truly become mainstream, digital assets need to follow a set of rules that everyone can understand. With Lummis leading this discussion, we should feel reassured that we have someone struggling to find ways to make the industry viable over the long term. She has a history that proves she understands the power of blockchain technology and the benefits of innovation in the fintech sector. And frankly, the last six months haven’t boded well for those who argue against any kind of regulation. Not only do we have headlines from disasters like Celsius Network, but there’s also a steady bang of eight and nine figure hacks that the industry can’t seem to stop.

Since her election to the US Senate, Lummis has been a staunch advocate for financial privacy, sound regulation and increased innovation in the financial sector. She fought against the overstepping of privacy in the compliance measures of President Joe Biden’s American Families Plan. In a particularly lively exchange with Treasury Secretary Janet Yellen, Lummis noted that “bank customers are not under the authority of the federal government. Banks don’t work for the IRS.”

Lummis once proclaimed that “privacy is a way of life” in Wyoming before bemoaning Big Tech’s trampling on civil liberties. At the same time, she works to improve the competitiveness of American innovators in a global economy. She was among the first to think that “legal clarity in the digital asset industry” would improve the country’s competitiveness vis-à-vis China. And it’s worth considering that among the major powers, China is way ahead of the US and the European Union in developing, testing and launching a central bank digital currency (CBDC). As the senator has noted separately, China is in part pushing for a digital yuan to increase control over the country’s financial system through enhanced surveillance capabilities.

While the senator believes that an American CBDC would help strengthen the US dollar for the foreseeable future, Lummis also called for privacy to be a “cornerstone principle” for any CBDC proposal that goes forward. Among their most notable positions is that we “cannot allow a CBDC to become a panopticon.”

Related: GameFi developers could face hefty fines and hard times

Overall, Lummis’ positions appear to be at odds with one another. She fights for new technological innovations in the financial sector, but warns that privacy must be paramount. In fact, the juxtaposition of her ideas on the subject is what makes her the ideal negotiator for fair and balanced cryptocurrency legislation. Digital assets are created on the basis of blockchain technologies that will categorically change the way the world does business. These technologies should be encouraged. Innovation is important for the long-term economic success of our country. At the same time, however, the cryptocurrency industry is yearning for more regulation, particularly around anti-money laundering laws and Know Your Customer compliance.

It’s up to government to strike a balance that protects the general well-being of citizens while allowing innovators to do what they do best. Lummis strikes the right notes. Wyoming and the rest of the world will benefit from blockchain-based technologies, including digital assets. But we need a leader in the US Senate who champions citizens’ rights while ensuring that American technology providers are competitive on the world stage.

Lummis hit the right note, combining the pursuit of innovation with protecting our right to financial privacy. Neither privacy nor innovation are partisan ideas. They’re not even political. They’re just common sense.

Richard Gardner is CEO of Modulus, which develops technology for institutions including NASA, Nasdaq, Goldman Sachs, Merrill Lynch, JP Morgan Chase, Bank of America, Barclays, Siemens, Shell, Microsoft, Cornell University and the University of Chicago.

This article is for general informational purposes and should not be construed as legal or investment advice. The views, thoughts, and opinions expressed herein are solely those of the author and do not necessarily reflect or represent the views and opinions of Cointelegraph.

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