U.S. Senator Lummis calls Bitcoin ‘the hardest money ever been created’

United States senator from Wyoming Cynthia Lummis has termed Bitcoin (BTC) the ‘hardest money ever created’ moments after officially unveiling the country’s first cryptocurrency bill. 

Speaking during an interview on CNBCs’ Squawk Box Show, Lummis noted that Bitcoin introduces the spectrum of a store of value and can serve as a portfolio diversifier for investors. 

Lummis was responding to a question regarding her stand on a move by the Labor Department opposing the idea of companies allowing employees to diversify between cash and Bitcoin for their retirement funds. 

“If you have a fully diversified asset allocation, you have some assets that you want to produce income in the short run. You also wish for some assets that are just a store of value, and that’s where Bitcoin shines. I think it’s some of the hardest money that’s ever been created,” she said. 

Division over crypto regulations

Lummis’s opposition to the department’s take on Bitcoin diversification highlights differences between U.S. agencies on crypto regulation. Institutions like the Federal Reserve have raised concerns about adopting cryptocurrencies, with the Senator aiming to use the bill to support digital currencies. 

The bipartisan bill co-sponsored by New York senator Kirsten Gillibrand seeks to integrate cryptocurrencies into the financial sector. The senators stated there would likely be more momentum behind the bill as they plan to continue working with industry stakeholders to improve it.

Lummis noted that Congress needs to support innovations in the crypto space besides focusing on consumer protection. She said that it is time the U.S. rolled out crypto laws considering the country is a leader in the global financial system. 

Clarification on digital currencies

Specifically, the bill is expected to offer a pathway for classifying digital assets into commodities and securities while clarifying the proper regulatory body between The Commodity Futures Trading Commission (CFTC) and the Securities Exchange Commission (SEC). 

On her part, Senator Gillibrand stated that the draft bill aims to bring transparency, accountability and certainty to the growing sector.

“The most important goal of this legislation was to create transparency, accountability and certainty. Regulation is necessary. You need to make sure that you have consumer protections. You need basic rules of the road,” she said. 

Before voting, the bill will pass through four house committees for consideration.