Senator Cynthia Lummis of Wyoming has proposed that the Federal Reserve must keep bitcoin on its financial statement.
“I think it’s a great idea, to be honest,” Lummis said on a board hosted by Orrin G. Hatch Foundation on Thursday. The Fed holds over $40 billion in foreign currency reserves, so buying bitcoin would be “a great idea to be honest.” Lummis was responding to a question from panel moderator and Hatch Foundation executive director Matt Sandgren, who was hosting the session on the coming years of the crypto industry.
“That will make a lot of sense until there is a regulatory and statutory framework,” Lummis added. “Because [bitcoin] is entirely decentralized, it will become more pervasive over time, and I believe it will be something the Fed should retain on its financial statement.”
Won’t Be Added To Balance Sheet
Former Fed vice chairman for oversight Randal Quarles was also on the panel, but he believes bitcoin will not be added to the central bank’s balance sheet anytime soon.
“I think it’s preferable to preserve the Fed’s financial statement, even though it isn’t today, [but] it ought to trend further in that way — completely treasuries,” Quarles said.
On the other hand, Lummis has long been pro-crypto and an outspoken supporter of the business. The 67-year-old congressman initially purchased bitcoin in 2013, when its price was around $350. The price of bitcoin is currently about $41,000.
Lummis said that her son-in-law showed her how to buy bitcoin on the panel. Lummis said her earlier job as Wyoming treasurer forced her to look into a variety of assets, some of which could have provided brief income and others which could have served as a store of value, and it was during this time that she did learn more about bitcoin and realized its value as a payment instrument.
“Bitcoin is the digital equivalent of gold. It’s a tough financial situation. She stated that only 21 million will ever be manufactured “On the panel.
According to Lummis, traditional banks will gradually incorporate bitcoin and other digital products into their products and create cryptocurrency departments.
To Be Disclosed Publicly
Recently, the senator has already taken several crypto-related activities. In December, Lummis surreptitiously circulated a draught bill around officials and the crypto sector. The measure aims to clarify crypto regulatory issues in a variety of ways.
The measure is presently being reviewed by the legislative council, according to Lummis, who added that it will be publicly disclosed “very soon.”
The law proposes a crypto self-regulatory organization, or SRO, that would make preliminary determinations on whether a cryptocurrency is a commodity or perhaps security. And if either the CFTC or the SEC disagrees with that evaluation, Lummis noted, they can use a regulatory framework mechanism to sway the outcome in their favor.
“This law can be broken down rationally into approximately five or six stand-alone sections,” Lummis added. “We’re in contact with other senators from both parties to see who could be concerned in sponsoring the banking, privacy, and consumer protection components of this legislation,” reports Cnbc.com