The crypto industry can count on Cynthia Lummis to get regulation right

As the world waits to see the US stance on cryptocurrency regulation, crypto enthusiasts should remember one thing: The industry can count on Senator Cynthia Lummis. Her proposal with Senator Kirsten Gillibrand, which we have all been waiting for action on, is bipartisan.

We’re still waiting on the final details, but things have slowed down to a review with the November election around the corner. US Securities and Exchange Commission Chairman Gary Gensler has gone ahead with comments suggesting that the Commodity Futures Trading Commission will take an important role in overseeing Bitcoin (BTC), which itself would require congressional action.

However, we do know a few things that are consistent. In particular, Lummis has said in interviews that she welcomes comments from the industry. That dialogue is critically important to get this legislation done right.

“We have the design [the crypto bill] so it works within the normal framework of managing and regulating traditional assets,” Lummis said. “We’re going to put it out in draft form for discussion purposes, and you can spend 30 days helping us get this bill in the best shape we can before we actually file it.”

Related: Senator Lummis: My proposal with Senator Gillibrand empowers the SEC to protect consumers

There is no doubt that the industry needs greater guidance on how digital assets should be treated. Digital assets, including cryptocurrencies and stablecoins, deserve better oversight. Investors should be able to trust that they follow the same regulatory routine as securities or commodities and be sure which commission oversees them. Right now they are stuck in limbo, which is not healthy for the industry.

Some in the industry believe that any regulation is by definition a bad thing. But to truly mainstream, digital assets must follow a rulebook that everyone can understand. Having Lummis lead this discussion means we should feel comfortable that we have someone fighting to find ways to make the industry viable for the long term. She has a track record that proves she understands the power of blockchain technology and the benefits of innovation in the fintech sector. And frankly, the last six months have not boded well for those who argue against regulation of any kind. Not only do we have headlines from disasters like the Celsius Network, but there’s also a steady drumbeat of eight- and nine-figure hacks that the industry can’t seem to stop.

Since her election to the US Senate, Lummis has taken a steadfast stand for financial privacy, common sense regulation and increased innovation in the financial sector. She fought privacy abuses in compliance measures in President Joe Biden’s American Families Plan. In a particularly heated exchange with Treasury Secretary Janet Yellen, Lummis noted that “bank customers are not subject to the federal government. Banks do not work for the IRS.”

Lummis once preached that “privacy is a way of life” in Wyoming before lamenting that big tech is trampling on civil rights. But at the same time, she has advocated for strengthening American innovators’ ability to compete in a global economy. She was among the first to suggest that bringing “legal clarity to the digital asset industry” would boost the country’s ability to compete with China. And it’s worth considering that among major powers, China is way ahead of the US and the EU when it comes to developing, testing and deploying a digital central bank currency (CBDC). China, as the senator has noted separately, is pushing a digital yuan, in part, to increase control over the country’s financial system through enhanced surveillance capabilities.

If we want to keep pace with China, we need to bring legal clarity to the digital asset industry. While the SEC has a reputation as a black hole for innovators, Gary Gensler recognizes the potential of digital assets. (1/2)

— Senator Cynthia Lummis (@SenLummis) 14 April 2021

While the senator believes that a US CBDC will help strengthen the US dollar for the foreseeable future, Lummis also called for privacy to be a “cornerstone principle” in any CBDC proposal moving forward. Among her most notable positions is that we “cannot allow a CBDC to become a panopticon.”

Related: GameFi developers could face heavy fines and hard time

Taken as a whole, Lummis’ positions seem to be in conflict with each other. She fights for new technological innovation in the financial sector, but she warns that privacy must be of utmost concern. In fact, the juxtaposition of her ideas on this issue is exactly what makes her the ideal negotiator for fair and balanced cryptocurrency legislation. Digital assets are built based on blockchain technologies, which will categorically change how the world does business. These technologies should be promoted. Innovation is essential to our nation’s long-term economic success. But at the same time, the cryptocurrency industry is yearning for greater regulation, especially when it comes to anti-money laundering laws and Know Your Customer compliance.

It is up to government to strike a balance that protects the general welfare of citizens while allowing innovators to do what they do best. Lummis hits all the right notes. Wyoming, and the rest of the world, will benefit from blockchain-based technologies, including digital assets. But we need a leader in the US Senate who will stand up for the rights of citizens while ensuring that US technology providers are able to compete on the world stage.

Lummis has struck the right note, reconciling the pursuit of innovation with the protection of our right to financial privacy. Neither privacy nor innovation are partisan ideas. They are not even political. They are simply common sense.

This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts and opinions expressed herein are those of the author alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.