Pro-Bitcoin (BTC) United States Senator Cynthia Lummis is drafting regulations for stablecoins, a type of cryptocurrency pegged to real-world assets to ensure stable prices.
Lummis has been working jointly with Senator Kirsten Gillibrand for several months on a bill aiming to provide regulatory clarity for stablecoins and protect investors, the U.S.-based news agency Axios reported on March 7.
Citing several spokespeople for Lummis and Gillibrand’s offices, the report notes that the senators hope to officially announce the news following encouraging feedback from multiple stakeholders.
The New York Department of Financial Services, the Federal Reserve, the Treasury Department and the National Economic Council have provided technical assistance on the Senate bill, the report mentioned.
For Lummis and Gillibrand, the work on stablecoin regulation would not be their first foray into drafting cryptocurrency-related legislation. In July 2013, the senators announced a joint effort to reintroduce legislation aimed at establishing a comprehensive regulatory framework for digital assets.
Lummis has emerged as a major pro-Bitcoin lawmaker in the U.S., advocating for Bitcoin multiple times.
In October 2021, Lummis urged the U.S. government to “thank God for Bitcoin” amid U.S. President Joe Biden approving another raise of the country’s debt limit. Lummis called on the U.S. government to take advantage of Bitcoin because it is decentralized and not controlled by any government.
Lummis is also known for accumulating significant amounts of Bitcoin, buying BTC in batches of $50,000 and $100,000 in 2021.
While bullish on Bitcoin, Lummis has grown skeptical about some major stablecoins recently, including Tether (USDT), the largest stablecoin by market capitalization and the most traded cryptocurrency at the time of writing.
Related: UK regulations will allow stablecoins and CBDCs to coexist, says former BoE fintech lead
In October 2023, Lummis backed a massive campaign against Tether, asking the U.S. Justice Department (DOJ) to consider criminal charges against the stablecoin firm amid some reports alleging that it engaged in illicit financial transactions. Tether subsequently reacted to lawmakers’ requests for DOJ action, claiming it wants to be a “world class partner” to U.S. regulators.
Most recently, Lummis has also been aggressively opposing central bank digital currencies, arguing that such digital currencies are “anti-democratic and a means of financial censorship.”