Senator Lummis Advocates for Cryptocurrency in 2023
In an emphatic declaration of support for cryptocurrency, U.S. Senator Cynthia Lummis (R-WY) proclaimed that 2023 will be a pivotal year for digital assets, citing a recently released report from the President’s Working Group on Digital Asset Markets. This report is seen as a significant step toward establishing robust federal regulations that are anticipated to enhance innovation and alter the landscape of financial markets.
Support for Digital Assets
As Chair of the Senate Banking Subcommittee focused on Digital Assets, Lummis expressed her enthusiasm during a statement made on July 30. She noted,
“It is a relief to finally have a president who recognizes the revolutionary potential of digital assets and blockchain technology in shaping America’s financial future.”
She highlighted her ongoing work on key proposals outlined in the president’s report since taking office in 2021, expressing her eagerness to collaborate with the President to implement these transformative initiatives.
On social media platform X, she further reinforced her message with a bold statement, declaring,
“This is the year for digital assets.”
Legislative Efforts and Critique of the Federal Reserve
Lummis elaborated on the connection between the presidential report and her own legislative efforts over the past four years, emphasizing a shared vision for the future of digital finance. However, she did not shy away from critiquing the Federal Reserve Board and its regional banks, accusing them of neglecting federal laws regarding master account access for banks that focus on digital assets. Her scrutiny contributed to the withdrawal of Sarah Bloom Raskin’s nomination for a prominent supervisory position at the Federal Reserve.
Moreover, Lummis expressed concern over what she described as a veiled directive from the Federal Reserve which assesses “reputation risk” related to banks involved in crypto, actions she links to what she calls Operation Chokepoint 2.0.
Proactive Advocacy for Comprehensive Legislation
Aside from regulatory reform, Lummis has been a proactive advocate for comprehensive legislation aimed at digital assets. In 2022, she proposed a financial technology sandbox framework that builds upon Wyoming’s 2019 legislation, intending to incorporate it into broader reforms being discussed within the Senate Banking Committee. Additionally, she has introduced legislation targeting the taxation of digital assets, proposing measures such as de minimis exemptions and relief for miners and stakers, alongside adjustments to the corporate alternative minimum tax.
While these initiatives face scrutiny from some who worry about decreased regulatory oversight, backers claim that these reforms are essential for maintaining the U.S.’s competitive edge in the fast-evolving world of blockchain technology.
