Senator Cynthia Lummis is drafting new legislation related to cryptocurrencies alongside Democratic Senator Kristen Gillibrand. The legislation will focus on banking, taxes, privacy, and consumer protection, among other things.
Senator Cynthia Lummis, alongside other senators, will craft a new digital assets bill which will be presented before the Senate in coming weeks. Bloomberg reports that the Republican senator will work alongside New York Senator Kristen Gillibrand, a Democrat, to draft the bill.
The bill will be introduced in the upcoming weeks, and deal with banking, taxes, privacy, and consumer protection, according to reports. The latter point is especially important, as it is something that the SEC has talked about on several occasions.
The legislation would follow the executive order signed by President Biden, who with the order set off a wide-reaching effort by government officials to regulate the crypto market. So far, there has been no substantial development, but the momentum is clearly there.
This is not the first time there has been bipartisan support for a crypto bill, as past discussions have also seen bipartisan support, a rare occurrence in Congress. Lummis herself has been at the center of those discussions, and she is known as one of the most pro-crypto lawmakers in the country.
New era of regulation for crypto in the US
The first few months of 2022 appear to be marking the start of a new era for the crypto market in the United States. The move towards regulation has been in the works for some time, but the executive order is what has really sparked a new wave of discussions. The much-needed clarity now brings relief to lawmakers, who could not make a substantial move earlier, and investors, who can rest easy knowing there will be clarity.
Given that the executive order is making room for crypto in the U.S., and that new legislation should largely be accommodating of crypto, the future bodes well for the market. This could lead to a tremendous boost to an inflow of funds in the market. Many investors who were previously hesitant may now join the market as there will be measures in place to protect them.
It may also lead to the potential approval of the first bitcoin ETF. There will be a long way to go before that happens, but it may happen sooner now that laws are coming into place.