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US Senator Cynthia Lummis: ‘I am a HODLer’

By Darius McQuaid

15:25, 2 December 2022

Senator-elect Cynthia Lummis meets with the media, 9 November 2020, in Washington DC
Lummis is the first woman to serve as US Senator for the State of Wyoming - Photo: Getty Images

Cynthia Lummis, the junior US Senator for Wyoming, said: “I am a HODLer” – the crypto term for Hold On For Dear Life and an encouragement to other crypto investors not to sell when prices fall.

Lummis made these remarks at the Financial Times Crypto and Digital Assets Summit: Winter Edition on Monday 28 November.

Lummis is the first woman to serve as US Senator for the State of Wyoming.

The Senator submitted a bipartisan crypto bill, alongside Democrat Senator Kirsten Gillibrand of New York, in June 2022 called the Responsible Financial Innovation Act which aims to create a regulatory framework for crypto.

Lummis also repeated the phrase used by Gary Gensler, chair of the US Securities and Exchange Commission (SEC), that crypto is like the “wild west” as there is currently “inadequate or no regulation surrounding crypto”.

The Wyoming Senator added that if her bill is passed into law and FTX had been complying with it then the cryptocurrency derivatives exchange would not have ended up filing for bankruptcy.

The Republican also added that her bill “can prevent future failures like FTX from happening”.

ETH/USD

3,512.15 Price
-0.460% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 21:00 (UTC)
Spread 6.00

SOL/USD

174.42 Price
-0.260% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 21:00 (UTC)
Spread 2.2652

XRP/USD

0.59 Price
-2.020% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 21:00 (UTC)
Spread 0.01168

BTC/USD

67,233.40 Price
-0.340% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 21:00 (UTC)
Spread 106.00

BTC to USD 

Wants to get regulation started in 2023

Lummis detailed how she wants “to get started on regulation in this [crypto] industry in 2023”.

If the bill is passed it would mean if a crypto firm did file for bankruptcy, then its “assets would be protected”.

Lummis said: “It is just the time to regulate in this space” and that she hopes this bill if passed “will tell other senators to learn more about crypto”.

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BTC is a commodity

The Republican Senator also said bitcoin (BTC) is “clearly a commodity” and so falls under the responsibility of the Commodity Futures Trading Commission (CFTC).  

At the same event, Rostin Behnam, chair of the CFTC said he felt numerous cryptos were securities but both BTC and ethereum (ETH) were commodities.

Markets in this article

BTC/USD
Bitcoin / USD
67233.40 USD
-227.7 -0.340%
ETH/USD
Ethereum / USD
3512.15 USD
-16.05 -0.460%

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The difference between trading assets and CFDs
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
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