Pro-Bitcoin senator Cynthia Lummis pushes stablecoin bill

Pro-Bitcoin ( BTC ) senator Cynthia Lummis is drafting regulations for stablecoins, a type of cryptocurrency that is pegged to real-world assets to ensure stable price.

Lummis has been working jointly with Senator Kirsten Gillibrand for several months on a bill aiming to provide regulatory clarity for stablecoins and protect investors, the American news agency Axios reported on March 7.

Citing several spokespeople for Lummis and Gillibrand’s offices, the report notes that the senators are hoping to officially announce the news following encouraging feedback from multiple stakeholders.

The staff at the New York Department of Financial Services, the Federal Reserve, Treasury and the National Economic Council have provided technical assistance on the Senate version, the report mentioned.

For Lummis and Gillibrand, the work on stablecoin regulation would not be the first foray into drafting cryptocurrency-related legislation. In July 2013, the senators announced a joint effort to reintroduce legislation aimed at establishing a comprehensive regulatory framework for digital assets .

Lummis has emerged as a major pro-Bitcoin lawmaker in the United States, advocating for Bitcoin before the U.S. government multiple times.

In October 2021, senator Lummis urged the U.S. government to “thank God for Bitcoin” amid U.S. President Joe Biden approving another raise of the country’s debt limit. Lummis called on the government to take advantage of Bitcoin because it’s decentralized and is not run by any government.

Lummis is also known for accumulating significant amounts of Bitcoin, buying BTC in batches of $50,000 and $100,000 in 2021.

While bullish on Bitcoin, Lummis has grown skeptical about some major stablecoins recently, including Tether ( USDT ), the largest stablecoin by market capitalization and the most traded cryptocurrency at the time of writing.

Related: UK regulations will allow stablecoins and CBDCs to coexist, says former BoE fintech lead

In October 2023, Lummis backed a massive campaign against Tether, asking the U.S. the Justice Department to consider criminal charges against the stablecoin firm amid some reports alleging that they engaged in illicit financial transactions. Tether subsequently reacted to lawmakers’ requests for DOJ action , claiming it wants to be a “world class partner” to U.S. regulators.

Most recently, Lummis has been also aggressively opposing central bank digital currencies, arguing that such digital currencies are “anti-democratic and a means of financial censorship.”

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