Senator Cynthia Lummis Calls for Comprehensive Crypto Regulation to Safeguard Consumers

US politician Cynthia Lummis discusses a comprehensive crypto regulation with user protection and clear company guidance.

In a recent CNBC television interview, the pro-crypto US Senator Cynthia Lummis emphasized the pressing need for a regulatory framework integrating cryptocurrencies into the US economy while prioritizing consumer protection.

Lummis revealed plans to reintroduce a crypto regulation bill that faced roadblocks in Congress last year, stating that the updated version incorporates valuable feedback from the Securities and Exchange Commission (SEC).

"We need a regulatory framework that integrates crypto assets into our economy in a way that ensures consumer protection," says @SenLummis. "This legislation is needed to protect consumers but also so there are rules for the road for companies." pic.twitter.com/drISz5suE9

— Squawk Box (@SquawkCNBC) July 12, 2023

We Need Regulated Crypto Exchanges

Lummis stressed the necessity of exchanges being registered with the Commodity Futures Trading Commission (CFTC) and addressing illicit finance to ensure the robustness of the crypto ecosystem.

Notably, the proposed bill aims to establish adequate penalties, secure the assets and reserves underpinning cryptocurrencies, and introduce additional safeguards for consumer protection.

The senator acknowledged the contradictory nature of companies like the bankrupt FTX that operated offshore without sufficient consumer protections. Lummis noted that the lack of regulation exposes consumers to potential risks, echoing SEC Chair Gary Gensler’s depiction of the crypto space as the “wild west.” 

By implementing the bill, Lummis believes that customers would be shielded from these risks and asserts that there must be clear guidelines and rules for companies integrating digital assets rather than regulation by enforcement.

When questioned about the SEC Chairman’s position on the bill, Lummis acknowledged Gensler’s initial concerns regarding certain definitions used in the bill. However, she clarified that the bill had incorporated some of the SEC’s recommendations, addressing what are securities from commodities and ancillary assets.

Lummis believes that Congress’s hesitance and the SEC’s lack of proactive guidance have contributed to the current erratic regulatory framework in the crypto space.

Speaking on the Ban on TikTok

Regarding the recent discussions surrounding a potential ban on TikTok, Lummis clarified that the objective is not an outright ban but rather to protect user data from surveillance by the Chinese Communist Party.

The proposed solution involves a registration system that safeguards users’ data and potential surveillance.

Ultimately, Senator Cynthia Lummis’ steadfast commitment to introducing a comprehensive crypto regulation bill reflects a growing recognition among policymakers of the need to establish the much-anticipated regulatory framework.