US Senator Cynthia Loomis talks about the cryptocurrency law

Watch: US Senator Cynthia Loomis talks about the “cryptocurrency law”

The senator expressed her conviction that digital assets based on blockchain and Cryptocurrency The industry “is going to be as big as the Internet itself.”

Cynthia Loomis, a Republican senator from Wyoming, is one of the architects of a proposed landmark bill that promises to end confusion over which cryptocurrencies are commodities and which are securities and create a regulatory framework for all digital assets.

On this week’s episode of The Crypto Mile, the senator discussed sweeping changes made by the two parties Responsible Financial Innovation Act It will bring him to the cryptocurrency industry.

Speaking to Yahoo Finance Lummis, he said that people in the US wanted a strong regulatory framework that would not repeat mistakes made when the Internet was in its infancy, regulation was lax and unethical use of customer data was allowed.

“Given the lax regulatory approach in the early days of the internet, I think a lot of people would like to get extra work and not be absolved of potential liability for social media giants who don’t adequately protect data privacy, for example,” Loomis said.

“Having learned some lessons from the time when the internet was in its infancy and we now see digital assets as something that will be the size of the internet itself, we want a situation where we have an ongoing dialogue and build a regulatory framework that is strong and responsive when it comes to protecting privacy.”

Loomis, along with New York Democratic Senator Kirsten Gillibrand, is the architect of the Responsible Financial Innovation Act, also called the Crypto Act.

She described the bill as having the potential to have a significant impact on the crypto industry as it would provide regulatory clarity regarding crypto assets to which agencies must comply, under specific circumstances.

She said: “The bill provides definitions for how to classify them.

“For example, bitcoin will almost certainly be a commodity, but some assets will be viewed as securities, which requires further disclosure for consumer protection purposes.”

Then the senator from Wyoming expressed her conviction that the blockchain-based technology will be embraced en masse and change the global economic landscape.

“Blockchain-based technology isn’t just here to stay, it’s also here to grow, expand, and provide opportunities that we can’t even imagine today,” she added.

The Republican senator then shed some light on the US Federal Reserve’s opinion on US dollar-backed stablecoins and central bank digital currencies, or CBDCs.

Lummis described how the Fed is likely to favor a stablecoin backed by the US dollar regulated from a direct-to-consumer CBDC.

“I am optimistic and believe the Fed agrees that in the United States we should not have a direct-to-consumer central bank digital currency,” she said.

“However, the Fed can have a beneficial CDBC in the wholesale market, which means moving funds more quickly and efficiently between banks.

“But the consumer interface with the US dollar will continue to be either a digital dollar or a stablecoin, i.e. 100% backed by the US dollar.

“It makes sense that the transition to a digital dollar would be part of the transformation of our current system.”

“We want to make transferring money between buyers and sellers of goods and services faster and cheaper.”

This view is supported by the United States’The President’s Working Group on Financial Markets releases a report and recommendations on stablecoinsWhich noted in November 2021 that “a well-designed and appropriately regulated stablecoin can support faster, more efficient and more inclusive payments.”

Many countries are experimenting with the use of digital central bank currencies, with China leading the world’s major economies, having made its own digital yuan

However, Lummis used Beijing’s experience of combining programmable money and mass surveillance with its developments in central bank currencies and the country’s social credit system as a warning of what not to do with digital currency technology.

“We need a framework that is not used as a means of surveillance, which we fear will happen with the CPC’s digital yuan,” she added.

In January of this year, the Federal Reserve released a discussion paper titled:Money and Payments: The US Dollar in the Age of Digital Transformation“.

The paper stated that there are risks associated with the central bank digital currencies destined for consumers that go beyond the commercial banking sector.

The paper stated that “central bank digital currency can also pose certain risks and raise a variety of important policy questions, including how it might affect the financial sector market structure, the cost and availability of credit, the safety and stability of the financial system, and the effectiveness of monetary policy.”

Stablecoins are a newer embodiment of the cryptocurrency ecosystem that links its value to one or more assets, such as a sovereign currency such as the US dollar or real assets.

Stablecoins pegged to the US dollar are mostly used today to facilitate the trading of digital assets, but many companies are exploring ways to promote stablecoins as a large-scale payment method.

Watch: The Crypto Mile: Episode 6 – Ethereum Insider Reveals Consequences of ‘Merge’

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