U.S. Senator Cynthia Lummis (R-Wyoming) has been working on an action plan for months. Lummis, a long-time proponent of cryptocurrencies, has been working on a proposal that would fully integrate digital assets into the US financial system.
Is this Regulation May be Disastrous for Altcoins?
The legislation will be introduced on Tuesday, June 7th, and it is significant because it includes definitions of which coins are commodities, which coins are securities, stable coins, the CBDC framework, and the NFT direction. This legislation will most likely be ideal for bitcoin, but it could also be beneficial to crypto in general.
The much-heated topic is analyzed by Altcoin daily on their channel as to why you should care about this. First and foremost, Cynthia Lummis is the one who is initiating and spearheading this bill.
On June 7th, Cynthia Lummis will introduce legislation to integrate cryptocurrency into the financial system. She has been a strong supporter of bitcoin and cryptocurrencies.
If passed, it would impose a two-year freeze on new and renewed air permits for fossil-fuel power plants that are used for energy-intensive “proof-of-work” cryptocurrency mining — the computing process that records and secures bitcoin and other forms of digital money. Bitcoin and other cryptocurrencies use a blockchain-based mechanism called proof-of-work.
Here’s What Panel Members Have To Say
The first member on the panel who is everyone’s favorite is Michael Saylor. Michael’s stance on crypto is unmistakable: securities and bitcoin are the most ethical and most transparent, as he stated during the panel discussion.
The second set of eyes is on Ted Cruz, a Republican from Texas. Cruz has been very positive about bitcoin and crypto, despite the fact that he himself doesn’t understand it and is trying to get other politicians to understand it. All in all, he doesn’t want to over-regulate it, which is good but is he more biased toward bitcoin? Time will tell.
According to other reports, Cruz now has large crypto donors who run a proof of work network in his state, keeping bitcoin strong and altcoins weak directly benefits Texas, and some of his largest new donors also take benefit. Cruz claims to own bitcoin and everything else is outside his risk profile.
Caitlyn Long blockchain consultant from Wyoming. She is hoping to work with Fed to create a custodial and Slowing Defi momentum that is in her best interest according to the reports.
Now again much like Caitlyn Long, Cynthia Lummis in their opinion has a little libertarian agenda and doesn’t want to over-regulate the crypto space so is it in her best interest to slow defi that remains to be seen.
BTC to Rise Like a Phoenix!
There aren’t many pro-defi, pro-Ethereum, pro-crypto folks working on this bill, and of course, Cynthia Lummis is spearheading it and has her own interests to pump bitcoin over any other L1s or altcoins. She stated that altcoins will rise from the ashes, reinforcing her belief in bitcoin.
“she states burn it all down bitcoin will be the phoenix that rises quick”
Bitcoin holders are in great difficulty this week, and the first thing they point out is that commodities vs securities are being resolved by legislation, and Ethereum L1 will fall within the securities umbrella.
So the lesson from all of this is that the folks who worked on this legislation are all very bitcoin oriented and bitcoin-centric, with a small number of Ethereum maximalists, and no defi or NFT types. Bitcoin users, on the whole, have a more libertarian attitude about crypto. Even though this isn’t a final bill, it wouldn’t be good if ETH, NFT, and crypto were classed as the riskiest securities.