Senator Cynthia Lummis Spearheads Bill Supporting Stablecoins with Bitcoin Backing

Crypto News– United States Senator Cynthia Lummis, a staunch advocate for Bitcoin, is currently drafting regulations for stablecoins, a form of cryptocurrency tied to real-world assets to maintain stable prices.

Senator Cynthia Lummis Spearheads Bill Supporting Stablecoins with Bitcoin Backing

According to a report by the U.S.-based news agency Axios on March 7, Lummis has been collaborating with Senator Kirsten Gillibrand for several months on a bill designed to establish regulatory clarity for stablecoins and safeguard investors’ interests.

The report, citing spokespeople from Lummis and Gillibrand’s offices, indicates that the senators plan to officially unveil the bill following positive feedback from various stakeholders.

The New York Department of Financial Services, the Federal Reserve, the Treasury Department, and the National Economic Council have reportedly provided technical assistance for the Senate bill.

Lummis has emerged as a prominent advocate for Bitcoin within the U.S. political sphere. In October 2021, she publicly praised Bitcoin’s decentralized nature, urging the U.S. government to acknowledge its benefits amid discussions about raising the country’s debt limit.

Notably, Lummis has amassed a significant amount of Bitcoin herself, acquiring BTC in increments of $50,000 and $100,000 throughout 2021.

Despite her bullish stance on Bitcoin, Lummis has expressed skepticism regarding certain major stablecoins in recent times, including Tether (USDT), the largest stablecoin by market capitalization and one of the most traded cryptocurrencies currently.