According to a senior assistant to the senator, the law would offer clear advice on which asset category a specific asset will come under and will also offer a framework to guide stablecoins, according to the news site.
Aside from that, it will suggest the establishment of a new institution to monitor the cryptocurrency market, which would function under the combined authority of the Commodity Futures Trading Commission (CFTC) as well as the Securities and Exchange Commission (SEC).
Lummis serves on the Banking Committee of the United States Senate. She has stated on several occasions that bitcoin is an excellent store of wealth. The senator recently revealed that she now possesses around five bitcoins, and has no plans to liquidate them in the near future. A large portion of her BTC is comprised of her family’s dairy farms, which are also component of her overall portfolio.
When asked about bitcoin as well as other non-fiat assets at a congressional hearing in October, Lummis responded: “Thank God for bitcoin, as well as other non-fiat assets, which defy the ineptitude of governments, like our own.” There have already been a number of proposals submitted in Congress with the purpose of regulating the cryptocurrency industry.
The “Digital Asset Market Structure and Investor Protection Act,” sponsored by U.S. Rep. Don Beyer in August, is intended to protect investors in digital assets. The law gives the Securities and Exchange Commission (SEC) power over crypto assets securities and the Commodity Futures Trading Commission (CFTC) control over virtual currencies. Congressman Patrick McHenry, a pro-bitcoin member of Congress, sponsored legislation in April that compels the SEC and CFTC “to form a working committee centred on cryptoassets” and that was enacted by the House of Representatives in May.
In August, two members of Congress from the United States encouraged the chairman of the Securities and Exchange Commission and the acting chairman of the Commodity Futures Trading Commission to establish a common working group for the supervision of cryptocurrency assets.
The “Digital Commodity Exchange Act of 2020 (DCEA)” and the “Crypto-Currency Act of 2020” are two more pieces of legislation aimed at regulating the crypto business.