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US Senator Cynthia Lummis: ‘I am a HODLer’

By Darius McQuaid

15:25, 2 December 2022

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BTC/USD
Bitcoin / USD
23418.75 USD
-28 -0.120%
ETH/USD
Ethereum / USD
1668.66 USD
-13.91 -0.830%

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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”.

DOGE/USD

0.10 Price
-1.780% 1D Chg, %
Long position overnight fee -0.0500%
Short position overnight fee 0.0140%
Overnight fee time 22:00 (UTC)
Spread 0.0012117

LUNC/USD

0.00 Price
-0.450% 1D Chg, %
Long position overnight fee -0.0500%
Short position overnight fee -0.0500%
Overnight fee time 22:00 (UTC)
Spread 0.00000792

XRP/USD

0.41 Price
-1.020% 1D Chg, %
Long position overnight fee -0.0500%
Short position overnight fee 0.0140%
Overnight fee time 22:00 (UTC)
Spread 0.00344

BTC/USD

23,418.75 Price
-0.120% 1D Chg, %
Long position overnight fee -0.0500%
Short position overnight fee 0.0140%
Overnight fee time 22:00 (UTC)
Spread 60.00

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.

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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.
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