Bitcoin Is Just Another Commodity And Owning A Commodity Isn't Anyway Wrong, Says Senator Lummis

Senator Cynthia Lummis is getting ready to introduce the Responsible Financial Innovation Act that can impact crypto taxation.

In an interview with “Meet the Press Reports”, she said owning Bitcoin is no different than owning cattle in terms of policymaking.

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.

U.S. Senator Cynthia Lummis never shied away from showing her support for the world’s leading cryptocurrency. Wyoming is also devising a policy that would impact crypto assets including BTC, which is not a part of a solid regulatory framework within the U.S.

This raised questions like if 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 would have to sell my cows. She adds that since I’m on the Banking Committee which might have related to the [Commodity Futures Trading Commission], or even laws in Congress that deal with the marketing or ownership of cattle?

On Ethics, the answer according to the U.S. Senate Select Committee is no. As per the 2021 guidelines, when the transaction is above $1000, Senators must disclose any sale, purchase, or exchange of any bond, stock, commodity future, or other security. To clear any doubts, commodities, and commodity futures are different. Commodities are real things while the latter are financial agreements for the purchase of that thing at a later date for a predetermined price.

In the case of crypto assets, members should report the coin or token they hold, and if possible the exchange or platform that has its custody. In 2020, Lummis reported holding BTC worth between $50,000 and $100,000. Then, in August 2021, she revealed the additional purchase of the flagship currency between $50,000 and $100,000. However, the senator does not claim to earn through its selling.

On the contrary, she owned cattle worth between $1 million and $5 million, and declared an income of $110,000 from them, according to fillings.

Lummis, who is drafting the Responsible Financial Innovation Act for providing tax guidance on capital gains from crypto-related activities such as Bitcoin mining, and staking, said that it wouldn’t matter if she sold everything today.

The main problem is that people do not see Bitcoin as an investment. It might be, however the regulators might have not exactly treated it as such.

She shares that she bought her first three Bitcoin for $330 each, which means she held $1000 worth of Bitcoin. But, now she adds the market worth $1.8 trillion, plus there are 17,000 to 18,000 cryptocurrencies, making it quite a big marketplace. She says she is just a “speck of sand.”

Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing