- Senator Cynthia Lummis is set to introduce the Responsible Financial Innovation Act which may impact crypto taxation.
- In an interview with “Meet the Press Reports”, she said owning bitcoin is no different from owning cattle in terms of policy-making.
- In 2020, Lummis reported holding BTC worth between $50,000 and $100,000. Then, in August 2021, she disclosed the additional purchase of BTC between $50,000 and $100,000.
US Senator Cynthia Lummis has never been shy about showing her support for the world’s leading cryptocurrency. Wyoming is also developing a policy that would impact crypto assets, including BTC, which is not part of a strong regulatory framework in the United States.
This raised questions as to whether it would be a “conflict of interest,” to which the senator says no. She explained that just like she owns Bitcoin and it is a commodity, she owns cows which are also commodities, but that doesn’t mean I should sell my cows. She adds that since I am on the banking committee, what could have been related to the [Commodity Futures Trading Commission]or even laws in Congress that deal with the marketing or ownership of livestock?
On ethics, the answer according to the US Senate special committee is no. Under 2021 guidelines, when the transaction is over $1,000, senators must disclose any sale, purchase or exchange of bonds, stocks, commodity futures or other securities. For the avoidance of doubt, commodities and commodity futures are different. Commodities are real things while real things are financial agreements to purchase that thing at a later date for a predetermined price.
In the case of crypto active, members must declare the coin or token they hold and, if possible, the exchange or platform that has custody of it. In 2020, Lummis reported holding BTC worth between $50,000 and $100,000. Then, in August 2021, it revealed the further buying of the flagship currency between $50,000 and $100,000. However, the senator does not claim to earn from his sale.
Rather, she owned livestock worth between $1 million and $5 million and reported an income of $110,000 from them, depending on the filings.
Lummis, who writes the Responsible Financial Innovation Act to provide tax advice on capital gains from crypto-related activities such as Bitcoin mining and staking, said it wouldn’t have any impact. matter if she sold everything today.
The main problem is that people don’t see bitcoin as an investment. It may be, but regulators may not have exactly treated it as such.
She shares that she bought her first three Bitcoins for $330 each, meaning she held $1,000 worth of Bitcoin. But, now she adds the market worth $1.8 trillion, plus there are 17,000 to 18,000 cryptocurrencies, making it a pretty big market. She says she’s just a “grain of sand”.