U.S. Senator Cynthia Lummis (R-Wyo.) has voiced the need for comprehensive regulations in the cryptocurrency industry to provide clarity and protect consumers. In 2023, Lummis, alongside U.S. Senator Kirsten Gillibrand (D-N.Y.), introduced a bipartisan bill aiming to establish a federal regulatory framework for digital assets.
According to Lummis, "The world is watching to see if America will continue to embrace innovation or not. The status quo of regulating through enforcement creates unclear rules for businesses and leaves consumers vulnerable. Congress must create rules of the road for the crypto asset industry."
In 2023, while the United States took legal action against several major crypto companies, other jurisdictions progressed with implementing regulations for the industry, as reported by CNBC. Many new crypto laws include potentially severe penalties; however, the United States remains unique in taking enforcement actions against leading digital asset companies. Former Justice Department prosecutor Renato Mariotti observed, "Other countries have a comprehensive regulatory framework in place. We don’t," adding that issues typically determined by legislation or regulation are instead being litigated.
As reported by CNBC, U.S. legislators introduced numerous bills related to the digital asset industry in 2023, with one bill advancing through House committees for the first time. Despite this progress, the United States still lacks federal laws specifically targeting the crypto industry. Meanwhile, last year saw the European Union (EU) implement its Markets in Crypto-Assets (MiCA) regulations, which are set to take full effect in 2024. U.S.-based companies such as crypto exchange Coinbase have applied for universal MiCA licenses which would enable them to operate throughout the EU if approved.
In an October 2023 press release, Lummis stated that her proposed Lummis-Gillibrand Responsible Financial Innovation Act would introduce comprehensive regulations for the digital asset industry. The legislation, according to the press release, would impose new penalties for violations of anti-money laundering laws and safeguard against the use of crypto for illicit purposes.
Leo Schwartz, a crypto analyst for Fortune, noted in his Proof of State newsletter that Lummis's bill exhibits a desire to "win over crypto skeptics" like U.S. Senator Elizabeth Warren (D-Mass.). He described the bill as "ambitious" due to its comprehensive nature and length, pointing out that it is "bipartisan, unlike the House bills" currently under consideration. Schwartz added that "Many elements will make the crypto crowd happy," such as giving more authority over the crypto industry to the Commodity Futures Trading Commission (CFTC) than to the Securities and Exchange Commission (SEC), along with providing funding "to implement the policies."
Before her election to the U.S. House in 2008, Lummis served as Wyoming State Treasurer for eight years. In 2021, she made history by becoming Wyoming's first female U.S. senator.
