Senator presses Congress to pass crypto bill

18 Nov 2022

U.S. Senator Cynthia Lummis has stated that the FTX collapse wouldn’t have occurred should the so-called Lummis-Gillibrand crypto bill have been passed by Congress.

Lummis, a long-time advocate of Bitcoin, believes the Federal Reserve should hold the world’s largest cryptocurrency on its balance sheet and has said on numerous occasions that BTC is an excellent store of value, Bitcoin.com reports.

She said on Twitter: “The FTX bankruptcy wouldn’t happen under the Lummis-Gillibrand bill.”

In June, Lummis and Senator Kirsten Gillibrand unveiled the Responsible Financial Innovation Act. The bill was defined as “landmark bipartisan legislation that will create a complete regulatory framework for digital assets that encourages responsible financial innovation, flexibility, transparency and robust consumer protections while integrating digital assets into existing law.”

Senator Lummis added that the bill addresses “clear property rights (not your keys, not your coins!),” provides “Strong protection and separation of customer assets on an exchange,” and puts “Tight limits on digital asset leverage and lending.” In addition, it provides “Bankruptcy protection for all customers” and ensures “Transparency into affiliates and connected organizations of an exchange.”

Lummis, from Wyoming, added that the FTX fiasco couldn’t have occurred in Wyoming: “Since 2019, we’ve known that affiliate transactions with digital assets are dangerous. And that’s why it is illegal in Wyoming; in Wyoming, there are strict limits on affiliate transactions such as occurred between FTX and its sister organization called Alameda.”

She added: “The Lummis-Gillibrand bill, for example, requires that an exchange not use customer assets for proprietary trading and maintain 100% of customer assets for withdrawal at all times.”

Following FTX’s bankruptcy filing, Lummis said: “It’s clearer now than ever before that we need comprehensive regulation in the digital asset space.”