Speaking during an interview on CNBCs’ Squawk Box Show, Lummis noted that Bitcoin introduces the spectrum of a store of value and can serve as a portfolio diversifier for investors. Lummis was responding to a question regarding her stand on a move by the Labor Department opposing the idea of companies allowing employees to diversify between cash and Bitcoin for their retirement funds.
Division over crypto regulations
Lummis’s opposition to the department’s take on Bitcoin diversification highlights differences between U.S. agencies on crypto regulation. Institutions like the Federal Reserve have raised concerns about adopting cryptocurrencies, with the Senator aiming to use the bill to support digital currencies. The bipartisan bill co-sponsored by New York senator Kirsten Gillibrand seeks to integrate cryptocurrencies into the financial sector. The senators stated there would likely be more momentum behind the bill as they plan to continue working with industry stakeholders to improve it. Lummis noted that Congress needs to support innovations in the crypto space besides focusing on consumer protection. She said that it is time the U.S. rolled out crypto laws considering the country is a leader in the global financial system.
Clarification on digital currencies
Specifically, the bill is expected to offer a pathway for classifying digital assets into commodities and securities while clarifying the proper regulatory body between The Commodity Futures Trading Commission (CFTC) and the Securities Exchange Commission (SEC). On her part, Senator Gillibrand stated that the draft bill aims to bring transparency, accountability and certainty to the growing sector. Before voting, the bill will pass through four house committees for consideration.
