- Cynthia Lummis will continue to lead efforts to integrate crypto assets into the financial system
- She recalled that these efforts led to the formation of the Financial Innovation Caucus
- This allowed for the development of the RFIA, which regulates the fundamentals of the crypto industry
In her recent interview with FOX, she recalled that when she joined the U.S. House of Representatives in 2008, almost nobody realized the potential of blockchain and all possible blockchain-based solutions.
“When I came to the US Senate, nobody knew anything about digital assets, no one knew the difference between Bitcoin (BTC) and alternative coins. So we’ve worked hard to educate members of the Senate,” said Cynthia Lummis.
First, she and her colleagues saw the potential impact on the future economy. They joined forces to form FINANCIAL INNOVATION CAUCUS to educate Senate members about digital assets and financial technology.
The members were Kyrsten Sinema, Tim Scott, Mike Rounds, Shelley Moore Capito, Mike Braun, John Hickenlooper, Marsha Blackburn, Steve Daines, and Kevin Cramer.
Developing a Financial Framework
Their efforts served as the basis for the further development of legislation regarding digital assets and cryptocurrencies and provided us later with a specific regulatory framework for digital assets, the Lummis-Gillibrand Responsible Financial Innovation Act (RFIA).
“I am proud to release this new, strengthened version of the bipartisan Lummis-Gillibrand Responsible Financial Innovation Act with my friend and partner Senator Lummis,” said Senator Gillibrand.
Considering the last updates, its main statements include:
- Clear distribution of powers between the financial regulators SEC and CFTC
- Provisions for digital assets and decentralized autonomous organizations (DAOs)
- Consumer protection measures
- Provisions for the issuance and regulation of payment stablecoins
- Enhanced transaction oversight for AML
- Supporting new projects and financial companies if complying with relevant regulations
Importance for the Future
“We now are seeing some of the fruits of those labors, planting the seeds of understanding within the Congress about how this asset class is growing, how Bitcoin is a store of value and a means of exchange, how Ethereum is possibly a blockchain platform that can be used for a variety of applications. So this is an industry that’s starting to gain the attention of everyday Americans, and it’s going to be an important part of our economy going forward, unless we blow it,”
Cynthia Lummis in interview for FOX.
Seeing how blockchain technology and the blockchain-based solutions industry are ahead of the curve and evolving incredibly rapidly, Cynthia Lummis is correct in her predictions about the regulatory framework that needs to be developed and implemented.
This need will only grow with the development of digital assets and the industry’s increasing capitalization if governments strive to fully adapt and develop a single regulatory standard.
Conclusion
The economy always affects politics, and crypto assets have an ever-increasing impact on the economy.
Thus, it forces political leaders to take positions and develop solutions to the rapidly evolving crypto industry.
Every day, we see news not only within the crypto community but also around it, discussions between decision-makers that will impact the fate of the whole nation.
