Among the limited number of Congress members addressing the topic, Senator Cynthia Lummis (R-Wyoming) has been vocal about the emerging opportunities for crypto legislation in 2022.
Lummis, a member of the Senate Banking Committee, has previously mentioned her view that Bitcoin is an excellent hedge against changing fiat currency values. Lummis announced legislation that would create a more explicit role for crypto through the Securities and Exchange Commission, the SEC. Specifically, jurisdiction would be shared with the SEC and Commodities Futures Trading Commission. Their joint task would be to oversee the cryptoasset marketplace.
The new legislation could also enable new taxation policies federally regarding the purchase, sale, and trade of crypto. Notably, consumer protections are an essential facet of the new legislation as millions of USD are lost in crypto scams each year.
The United States Government has a difficult task, regulating the unregulated. How do you ensure consumer and citizen safety while keeping the marketplace open and free from manipulation? Will the government’s efforts remove the value in crypto, or at least disincentive it?
Lastly, the topic of regulation also leads to conflict within the legislators in Washington. Lummis has declared significant ownership in Bitcoin in her mandated filings. While not illegal by any means, it raises the question of conflicting interests. It is unclear precisely what type of legislation and guidelines about crypto will come out in the near future.
All that can be said at the end of 2021; changes are coming, regulations are probable. Does this impede on the essence of cryptocurrencies?
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