How Will Cynthia Lummis’s Proposed Bill Affect Bitcoin

Senator Cynthia Loomis, a farmer and Republican senator from Wyoming inserted Comprehensive and comprehensive bill on Bitcoin and cryptocurrency regulations. The RFI (Responsible Financial Innovation) Act was passed on June 7The tenth by the senator along with Christine Gillibrand, a New York securities attorney, and a Democratic senator.

Related reading | Bitcoin open interest drops as price drops below $31,000

According to Lummis, the proposed bill will lead to the adoption of cryptocurrency in the traditional financial system. Thus, enabling digital currencies to become accepted as commodities.

A clear distinction between Bitcoin and other commodities

The senator made it clear that when the crypto bill was promoted before it was published, if the bill was passed into law, a change would be made to it. She said there will be a clear difference between securities, commodities, cryptocurrencies, stablecoins, collectibles, and NFTs.

Furthermore, the premium rating status of securities and commodities will be determined by Bitcoin, as it has the highest probability of a commodity.

How Cynthia Lummis's Proposed Bill Will Affect Bitcoin
Bitcoin is moving sideways on the daily chart. source: BTCUSD TradingView

Furthermore, Bitcoin has a strong resemblance to a commodity in its volatility due to the demand for a rare virtual asset with the worldwide macro price correlating with the energy price. Also, Bitcoin inflation is caused by complex rigs that facilitate BTC token mining software that anyone can download.

In a recent interview, Senator Loomis was asked her view on the position of the Securities and Exchange Commission chairperson regarding cryptocurrencies as a security. She replied that she agreed with his opinion.

Also, Lummis noted that the leading cryptocurrencies, Bitcoin and Ethereum, are not considered securities. The senators even added that the CFTC should regulate them, Market Watch reported.

This news is no small step but the result of many hours of consultation with mining and industry representatives to develop legislation. Loomis stated that she hopes this proposal will bridge a concise organization and, at the same time, not stifle progress.

Loomis reassured that there is no need to worry, as it is not necessary to over-regulate bitcoin. If they try to do so, the innovation of the asset will move to other countries where it is more accepted.

Michael Saylor’s participation in the legislation

Another thing you mentioned is that the legislation will clearly define the obligations of the two existing organizations. These regulators include the CFTC and the US SEC (Securities and Exchange Commission). It develops existing regulations for cryptocurrency without introducing any new regulatory entities.

Related reading | US Macroscopic Pressure Responsible for Complete Bitcoin Downtrend

Senator Loomis’ leadership Adviser Michael Saylor, founder and CEO of MicroStrategy. She explained that he was one of the first people to see the proposed bill, given his years of experience in regulatory advocacy for cryptocurrency, investment, and cryptocurrency.

In an interview with Lex Friedman on his Technology and Science show, the head of MicroStrategy rejected the distinction between cryptocurrencies and stocks. He also mentioned that Bitcoin and securities are not the same.

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