Did Cynthia Lummis’ Bitcoin bill fall between clear regulation and innovation?

Sahana Kiran
Source: Pixabay

Bitcoin’s [BTC] journey from being thrashed by government officials to being embraced by the same people is truly commendable. Wyoming’s Republican Senator, Cynthia Lummis emerged as a favorite among the crypto community for her increased interest in the crypto-verse. She further elevated this inclination towards the market by working on a bill that was expected to make its debut later today. However, the bill managed to find its way to Twitter even before the official release.

The ‘Responsible Financial Innovation Act’ was all set to take the front stage today after months of work and hype around it. Not just Lummis, Kirsten Gillibrand, a Democrat Senator from New York also helped in this bill.

Time and again, regulators have imposed stringent laws in the name of regulations on Bitcoin. This has further hindered innovation of the same. Keeping this as the primary focus, Lummis’s bill intends to lay out a balance between innovation and investor protection. Elaborating on the same she said,

“We hope hits the sweet spot between regulation that is clear and understood and does not stifle innovation.”

The disclosure laws in the leaked crypto bill are reportedly quite stringent further causing it difficult for anonymous projects to stay put in the market.

Governments across the globe have been addressing the demand for crypto and speeding up their regulatory process. While some countries have been trying to garner benefits from legalizing crypto, a few others continue to view the market as a mere gamble. As a result, Lummis did not want to overregulate the market.

She added,

“If we overregulate, it [Bitcoin innovation] will go to other countries.”

Clear Bitcoin regulations for the win?

The leaked bill addresses an array of aspects. With 600 pages filled with details pertaining to regulations. As she said in her recent interview, the comprehensive bill entails,

“Coins that are commodities, coins that are securities, it includes stablecoins, it includes a discussion about CBDCs, consistent with what we heard earlier and a small nod to NFTs.

Several speculate that this bill would bring more clarity to the crypto market. Turns out, the crypto community wasn’t the only ones awaiting this bill, regulators across the country were also looking forward to it. Lummis added,

“Even the regulators are waiting to see our legislation move forward.”

Furthermore, the bill has given a slew of regulators intersectional powers probe as well as give in advice about regulations in new arenas.

Read more about the leaked crypto bill here:

While some believe that this bill wasn’t as crypto-friendly as they expected it to be, the community was glad that it brought some clarity.