Lummis Outlines The Scope Of Crypto Regulation Bill

On November 28, Senator Lummis participated in an interview at the Financial Times’ Crypto and Digital Assets Summit in London. She described the cryptocurrency industry as the “Wild West” since it lacks or has insufficient regulation.

According to the interview of the Financial Times’ Crypto and Digital Assets Summit, the U.S. Senator from Wyoming/Space Junk Lady believes that FTX company would fall under the jurisdiction of the SEC, but underlying assets would fall under the jurisdiction of different entities, Lummis took an example “bitcoin as a commodity” which would fall under the Commodity Futures Trading Commission.

Besides, Lummis believes that the FTT token looked like a stablecoin, which would involve other regulatory agencies such as the Office of the Comptroller of the Currency, while stablecoins issued by banks should be insured by the Federal Deposit Insurance Corporation.

Senator Toomey has a bill that addresses stablecoins that are issued by non-banks. In both cases, we would require those stablecoins to be 100% backed by hard assets such as US dollars or a basket of currencies. Those are things, that had they been in place for FTX, would have set off alarm bells and created enforcement actions and reviews by federal regulatory agencies.

She said

FTX was heavily involved in drafting the bill that is before the Senate Agriculture Committee, which has jurisdiction over the Commodity Futures Trading Commission (CFTC), and Lummis said it needs to be rewritten in a way that is more effective and neutral as to business models, but still very focused on consumer protection.

Lummis said she’s also open to tightening up definitions around digital assets in the bill, in collaboration with the Securities and Exchange Commission. In addition, Lummis hopes that the Lummis-Gillibrand Bill will be a top priority for lawmakers when the next Congress convenes in January 2023 because FTX has brought attention to the need for regulation.

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