Senator Cynthia Lummis, known for her support of Bitcoin, is actively working on legislation concerning stablecoins, following her prior criticisms of prominent stablecoin issuer Tether in 2023.
United States Senator Cynthia Lummis, a prominent advocate for Bitcoin, is in the process of developing regulatory frameworks for stablecoins, cryptocurrencies tied to real-world assets to maintain price stability.
According to a report from Axios on March 7, Senator Kristen Gillibrand and Lummis collaborated for several months to draft a bill focused on offering regulatory guidance for stablecoins and safeguarding investors.
Spokespeople for Lummis and Gillibrand’s offices revealed that the senators aimed to announce the official legislation after receiving positive feedback from stakeholders.
The Axios report stated that the New York Department of Financial Services, the Federal Reserve, the Treasury Department, and the National Economic Council provided technical assistance on Lummis and Gillibrand’s proposed bill.
Lummis and Gillibrand had previously worked on other cryptocurrency-related bills, making their efforts on the stablecoin regulation bill familiar territory for them.
In July 2013, the senators announced their intention to reintroduce a bill establishing a comprehensive regulatory framework for digital assets.
Senator Lummis consistently supported Bitcoin, advocating for the cryptocurrency on several occasions.
During a vote to raise the U.S. debt limit in October 2021, Lummis urged the U.S. government to leverage Bitcoin due to its decentralized nature and independence from governmental control.
Senator Lummis was widely recognized for investing significant amounts in Bitcoin, purchasing BTC worth up to $100,000 at a time in 2021.
While Senator Lummis supported Bitcoin, she grew increasingly wary of popular stablecoins, including Tether.
In October 2023, Lummis backed a significant initiative targeting Tether, urging the U.S. Justice Department (DOJ) to evaluate potential criminal charges against the stablecoin company following allegations of involvement in unlawful financial activities.
In response to Senator Lummis’ request for DOJ action, Tether announced its intention to be a “world-class partner” to U.S. regulators.
Senator Lummis voiced vocal criticism of Central Bank Digital Currencies (CBDCs), expressing concern that they were anti-democratic and could be used to censor financial activity.
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