![She owns [Bitcoin], which is a commodity.](https://cryptoshrypto.com/wp-content/uploads/2022/04/Senator-Lummis.jpg "Senator-Lummis")
In an interview, Cynthia Lummis, a U.S. Senator from Wyoming, has advocated Bitcoin as a future currency. The interview began with the following question: “Is Bitcoin: a commodity or a currency?” Senator Lummis reacted swiftly and confidently:
“She owns [Bitcoin], which is a commodity.”
She believes that “it will become a currency eventually, but for the time being, it is a commodity similar to cattle, wheat, and gold. It will, at some point, become a form of payment, and it’s going to happen quickly.”
Lummis cited the development of the Bitcoin payment technology, the Lightning Network, to justify her optimism. She pointed out that Bitcoin arose from a whitepaper that omitted payment methods. The Lightning Network fills the void by offering a payment mechanism for Bitcoin, which should lead to future payment-related innovation.
Will Bitcoin become a currency if it is denominated in US dollars?
Following Lummis’ comments, NBC News host Chuck Todd stated that Bitcoin and other cryptocurrencies are denominated in US dollars and hence cannot function as currencies.
Lummis responded by claiming that Chris Giancarlo purposefully created this currency during his stint as Chairman of the US Commodity Futures Trading Commission (CFTC) to defend the international position of the US dollar. Lummis stated:
“[Giancarlo] wisely acknowledged that they (Pro-bitcoin) want Bitcoin and other cryptocurrencies to be denominated in US dollars. That, she believes, is essential because they want the US dollar to remain the world’s reserve currency.”
What is the process for regulating it?
After acknowledging the duality, Todd inquired about the best regulatory strategy for Bitcoin and other cryptocurrencies. Lummis asserted firmly that it would be governed as both a commodity and a stock.
She stated that such a regulation recommendation was made in the bill developed by Senator Kirsten Gillibrand and herself, which will be introduced in April.
She also stated that it will be governed by both, just like traditional assets are now. The CFTC will regulate it like a commodity, and it will have both spot and futures markets. The SEC [US Securities and Exchange Commission] will regulate consumer protection and other required requirements to ensure customers are not duped.
She also stated that their law includes a means to avoid initiatives from being halted owing to apprehension about the unknown. According to Lummis, the new measure would also propose the establishment of a controlled sandbox environment to allow individuals to freely construct and innovate.
