Senator Lummis Leads Effort to Regulate Stablecoins

Senator Cynthia Lummis, a big fan of Bitcoin, is on a mission to set some rules for stablecoins.

by Faruk Imamovic
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Senator Lummis Leads Effort to Regulate Stablecoins
© Getty Images/Marco Bello

Senator Cynthia Lummis, a big fan of Bitcoin, is on a mission to set some rules for stablecoins. Stablecoins are a kind of digital money that tries to keep its value steady by tying itself to things in the real world, like dollars or gold.

Lummis thinks these could make trading in cryptocurrencies a lot less wild. She's teaming up with Senator Kirsten Gillibrand to write a law that would make things clearer for everyone using stablecoins and help keep investors safe.

This isn't the first time Lummis and Gillibrand have dived into the crypto world together. They've already tried to lay down some ground rules for all kinds of digital money, showing they're really into figuring out how to make crypto work smoothly in America.

They're getting help from some big names like the New York Department of Financial Services and the Federal Reserve, so it looks like their plan to tidy up the stablecoin market is pretty serious.

A Bitcoin Believer's Worries

Senator Lummis isn't shy about her love for Bitcoin.

She's been all about getting the U.S. to get on board with it, especially when the government was looking to borrow more money. She even put her money where her mouth is, buying up a lot of Bitcoin herself in 2021. But lately, she's been worried about how some big players in the stablecoin game, like Tether, are doing business.

Last year, she was so concerned that she wanted the Justice Department to take a closer look at Tether, thinking they might be up to no good. Lummis isn't a fan of the idea of central bank digital currencies either. She thinks they're a bad move for democracy and could end up being a way for governments to keep too tight a grip on money. Her stance is all about keeping the spirit of cryptocurrencies like Bitcoin alive – free from too much control.

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