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US Senator Cynthia Lummis believes that the Federal Reserve should purchase bitcoin.

Cynthia Lummis, a US Senator from Wyoming, has said that the Federal Reserve should keep bitcoin on its balance sheet because it is a good way to store money.

On Thursday, Lummis was on a panel with the Orrin G. Hatch Foundation. “I think it’s a good idea to be honest,” he said. The Fed has more than $40 billion in foreign currency reserves, so he said. In response to a question from the panel moderator Matt Sandgren of the Hatch Foundation, Lummis said: “I think the future of the crypto economy is going to be a lot different than it is now.”

“Once there is a statutory and regulatory framework, that will make a lot of sense,” said Lummis, who was talking about the law and rules. Bitcoin is going to become more common because it isn’t controlled by anyone. I think the Fed should keep it on its balance sheet.

One of the panellists was Randal Quarles, who used to be vice chairman for supervision at the Fed. Quarles doesn’t think the central bank will add bitcoin to its balance sheet any time soon, though.

It’s best for the Fed to keep its balance sheet, which it isn’t doing right now, but it needs to move more in that direction. That way, it will be entirely made up of treasuries.

It’s been a long time since Lummis has been pro-crypto. She has been a strong supporter of the crypto industry and has been very public about it. Her first bitcoin was bought in 2013. The price was about $350 at the time. On this day in 2016, the price of Bitcoin is about $41,000.

Lummis told the panel that her son-in-law taught her how to buy bitcoin. If you want to know how Lummis first got into crypto, she says her job as treasurer of Wyoming made her look at a wide range of assets, some of which could have brought short-term income and others that were a long-term store of value. That’s when she learned more about bitcoin and saw it as a store of value.

“Bitcoin is digital gold. It’s hard money. There will only be 21 million ever produced,” she said on the panel.

Lummis also thinks that traditional banks will start to offer bitcoin and other digital assets in the future, and they’ll start their own crypto divisions.

The senator has been working on a lot of crypto projects recently. For the first time, in December, Lummis sent a draught bill to regulators and the crypto industry. This was done “quietly.” The bill is trying to make crypto regulations clearer in a lot of different ways.

People have told Lummis that he should make the bill public “very soon,” and he says that’s what should happen.

People who read the bill say that they want to set up a self-regulatory organisation (SRO) for crypto. This group would make some decisions about whether the crypto is a commodity or a security. Even though Lummis said that, even though one of the CFTC or the SEC agencies doesn’t agree with that assessment, they have a way to move it in their direction from a regulatory framework point of view.

“This bill can be broken logically into about five or six pieces that are stand-alone, said Lummis. “We’re working with other senate offices in both parties to see who’s interested in sponsoring the banking component, the privacy component, the consumer protection component of this legislation.”

Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.

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