TLDR
- Senator Cynthia Lummis has urged Congress to pass crypto regulation before the end of her term in 2027.
- She emphasized that current regulatory confusion has driven crypto companies to operate outside the United States.
- Lummis stated that the proposed legislation will define jurisdiction between the SEC and the CFTC for digital assets.
- She said clear rules would attract investment and innovation to the U.S. crypto market.
- Lummis confirmed she will focus her remaining time in office on advancing this crypto regulation.
Senator Cynthia Lummis has called on Congress to pass comprehensive crypto regulation to define market structure and regulatory clarity. Through her official X account, Lummis emphasized the urgency of enacting rules that distinguish digital assets as commodities or securities. She affirmed that such legislation would help protect investors and retain crypto businesses in the United States.
Lummis Prioritizes Market Structure Clarity Before Retirement
Senator Lummis plans to retire in 2027 and has made crypto regulation her legislative priority before leaving the Senate. She co-sponsored a bipartisan bill that proposes clear oversight roles for the SEC and the CFTC. The bill aims to reduce regulatory confusion that currently discourages digital asset innovation within the country.
In her statement, Lummis said,
“Unclear rules have pushed digital asset companies offshore,” and added that the bill “establishes clear jurisdiction and strong protections.”
She believes these rules will encourage firms to invest and innovate in the U.S. instead of relocating abroad. The proposal focuses on differentiating between securities and commodities in crypto assets.
She argued that existing regulatory overlaps weaken U.S. competitiveness in digital finance. Lummis highlighted how a clear framework would strengthen investor protection and help streamline compliance. Her bill addresses key challenges that exchanges and developers face due to regulatory ambiguity.
The Bitcoin ACT and Small Crypto Transaction Reform
Lummis supports the Bitcoin ACT, which proposes that the U.S. government could acquire up to one million Bitcoin for strategic purposes. The initiative treats Bitcoin as a distinct asset class and outlines how federal agencies might engage with it. The bill emphasizes Bitcoin’s decentralized nature and pushes for clear guidance on custody and use.
She also advocates for exempting crypto transactions under $300 from capital gains taxes. This exemption aims to simplify everyday use of cryptocurrencies and reduce the tax burden for small payments. The proposed tax rule is intended to support broader adoption of digital currencies.
Lummis believes these initiatives will support a balanced and transparent environment for crypto innovation. She continues to advocate for policies that reduce regulatory friction and enable crypto to thrive domestically. Her proposals align with her long-standing support for Bitcoin and digital asset development.
Senator Lummis Urges Defined Crypto Regulation
Senator Lummis warned that without clear crypto regulation, the U.S. risks losing capital and development to other nations. She stated that digital asset firms often leave the U.S. due to uncertain enforcement and oversight. This, she said, has weakened domestic participation in the crypto economy.
The bill seeks to reduce confusion around enforcement by clearly defining which assets fall under SEC or CFTC jurisdiction. Lummis emphasized that clear definitions would enhance compliance and facilitate lawful operations across the sector. She called for better rules to govern trading, custody, and financial services related to cryptocurrency.
She reaffirmed that Bitcoin should be treated differently from other digital assets, pointing to its decentralized structure. Lummis believes existing policies do not reflect the distinct nature of various crypto assets. Her proposal offers specific guidance for how each type of digital asset should be regulated.
Her office confirmed she will dedicate the remainder of her term to pushing for this legislative framework. The proposed bill continues to gain attention as crypto regulation remains a key issue in Congress. Lummis’s statements were released as Congress reconvenes to discuss financial policy.
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