By Shelly Melancon (Switzerland)
Senator Cynthia Lummis has hinted at proposed talks hinged on Bitcoin with the Biden administration. She further said talks will be supportive and fruitful. Perhaps this is against the backdrop of plans by Joe Biden’s administration to impose stringent regulations on cryptocurrencies. Also, in March, regulators in the US had announced plans by the Biden’s administration to impose a nearly 40% tax on crypto transactions exceeding $10,000. In fact, the Commodity Futures Trading Commission had investigated the largest crypto exchange, Binance in the same month for issues based on allowing users to trade futures and derivatives.
The renowned senator had said talks would also be held with digital assets regulators such as the Internal Revenue Service (IRS) and the US Treasury Department. Senator Lummis is one of the notable proponents of Bitcoin apart from Securities and Exchange Commission (SEC) commissioner, Hester Pierce who is often dubbed as ‘crypto mum’ for her pro-crypto stance. The commissioner had disapproved of calls for stringent regulation of cryptocurrencies, saying doing so would stifle innovation and emerging technologies. Senator Lummis had commended the decision of the National Republican Congressional Committee (NRCC) to receive charity donations in cryptos.
Senator Lummis Believes Bitcoin Would Help Fight Inflation
Moreover, Lummis is optimistic that Bitcoin would help fight inflation in the US. Experts have predicted that inflation in the country which currently stands at 2% could potentially experience an astronomical rise. Thus, US citizens may see cryptocurrencies as a means to hedge their finances against the projected inflation. The US Senator further said she sees investment in Bitcoin as a wonderful idea. She believes Bitcoin is a good store of value and would suffice to manage the devaluation of the US dollar.
Lummis acknowledges that this concept has not been broached before, however, she is working with her team to educate people because she sees digital currencies as being part of the US banking system in the future. Meanwhile, the US government is looking at launching a central bank digital currency to keep up with the soaring trend of cryptocurrencies. Perhaps, this is the reason for heightened calls for strict regulations in the cryptocurrency market.
Calls for Crypto Regulations Still on the Rise in US
The IRS had recently met with the US congress seeking assistance to regulate the crypto space. Charles Retting, Head of the organisation had noted that most cryptocurrencies were created to stay off the radar. Hence, the need for regulations to protect US investors against scams. In light of this, crypto exchanges in the country were advised to update their Know Your Customer and Anti-money Laundering rules. Binance had even restricted access to their exchange to only 43 states in the country; 7 states were excluded. Although this is not the first time the US is making attempts on crypto regulations; during Trump’s administration, he sought to regulate the crypto market because, as he says, he believes Bitcoin is a scam.
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