Cynthia Lummis and Kirsten Gillibrand are the biggest cheerleaders of the Senate’s Crypto Regulations – the biggest impact of 2022

Cheyenne Ligon is a CoinDesk news reporter focusing on crypto regulation and policy. He has no valuable crypto currency.

The crypto industry has its fair share of supporters on Capitol Hill, but two of its most vocal supporters are senators Cynthia Lummis (R-Wyo.) and Kirsten Gillibrand (D-N.Y.).

The bipartisan duo advocated for the crypto industry during the bull market, and just before the market crash in June 2022 introduced the long-awaited bill – the Financial Accountability Act – who aims to create comprehensive regulatory guidelines for the crypto industry.

The bill, if passed, would favor the Commodity Futures Trading Commission (CFTC) as the industry’s watchdog, and would make purchases below $200 tax-free – paving the way for crypto to used more as digital currency than digital gold.

Lummis and Gillibrand are also working on another bill with Sen. Patrick Toomey (R-Pa.) on stablecoin legislation that could be introduced as early as this year. The bill would compete with other bipartisan legislation being drafted in the House Financial Services Committee.

Lummis in particular has been a longtime fan of bitcoin. He told CoinDesk that he started buying bitcoin in 2013, when the price was close to $320, and never sold it. Public records show that the senator has between $100,000 and $350,000 worth of cryptocurrency.

Lummis has made it his personal mission to educate his colleagues about cryptocurrency, rotating through the Financial Innovation Caucus and Sen. Kyrsten Sinema (D-Arizona) earlier this year to bring in speakers to educate lawmakers at the staff level.

Although Gillibrand spoke less about crypto than Lummis, Fortune declared his state of New York “the center of crypto startups,” with 6.5 billion dollars invested at the beginning of this year. He has signed several pieces of crypto-friendly legislation as well, including another major effort in the Senate to regulate the crypto industry – senators. Debbie Stabenow (D-Mich.) and John Boozman’s (R-Ark.) Digital Commodities Consumer Protection Act (DCCPA).

Gillibrand and Lummis’ support for the crypto industry has earned them many supporters (and donors). Among them is disgraced former FTX CEO Sam Bankman-Fried, who donated $40 million to Democratic candidates before the November midterm elections. (Ryan Salame, co-CEO and Bankman-Fried of FTX Digital Markets, was a major Republican donor — a fact lost in many accounts of FTX’s political donations.)

Gillibrand was the recipient of at least $16,600 from Bankman-Fried, and she tried to wash her hands of him by promising to donate money to charity.

Lummis also cited the collapse of FTX as evidence that more regulation is needed, and said he plans to move forward with the Student Financial Accountability Act.

“A clear and fair exchange rule … is critical to ensuring consumers are protected while promoting responsible innovation,” Lummis said.

The collapse of FTX has also prompted many of Lummis and Gillibrand’s senators, including longtime crypto skeptics, including Elizabeth Warren (D-Mass.) and Sherrod Brown (D-Ohio), to call for urgent laws to prevent pollution and the future. collapse.

Although Lummis and Gillibrand continue to work on crypto-related policy, their enthusiasm for crypto – very loud and persistent during the bull market – is very quiet.

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Cheyenne Ligon is a CoinDesk news reporter focusing on crypto regulation and policy. He has no valuable crypto currency.

Cheyenne Ligon is a CoinDesk news reporter focusing on crypto regulation and policy. He has no valuable crypto currency.

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