In a recent interview with CNBC, Republican Senator Cynthia Lummis, a prominent supporter of crypto assets, discussed the potential for significant regulatory changes following the upcoming US elections.

With less than two months until voters go to the polls, Lummis stressed the need for a resilient digital asset framework to support the U.S. economy.

Lummis is calling on Congress to take the lead on cryptocurrency regulation

While there has been significant progress, including the approval of cryptocurrency funds (ETFs) that invest directly in major cryptocurrencies such as Bitcoin (BTC) and Ethereum (ETH), Lummis he noticed that the US still lags behind ineffective European Union regulations.

The senator emphasized that the EU began implementing its regulatory framework in January 2023. Lummis expressed concern that the United States should not have allowed other countries to take the lead in financial services.

Commenting on the latest statements filed earlier this week by Securities and Exchange Commission Chairman Gary Gensler, which emphasized the need to further protect investors in the industry, Lummis argued that the SEC’s current approach – characterized by enforcement actions rather than clear regulatory guidance – hinders the growth of the cryptocurrency industry .

Lummis asserted that Congress should take the reins on regulating the sector, criticizing the SEC for claiming to have the necessary tools when instead court cases against alleged bad actors under the current Biden administration.

Lummis questions Gensler’s SEC future

As for Gensler’s future with the SEC, Lummis noted that if former President Donald Trump is re-elected, he indicated intentions fire Gensler immediately. However, she was less certain of Gensler’s fate if Kamala Harris won.

Discussing the prospect of a divided Congress — in which the House could be composed of Democrats and the Senate of Republicans — Lummis expressed optimism that a Republican-controlled Senate would be more favorable to digital resources.

The senator stressed that Tim Scott’s potential chairmanship of the Banking Committee would lead to a stronger push for a regulatory framework for digital assets, contrasting with the current leadership under Sherrod Brown.

This comes as Lummis is also actively proposing legislation to strengthen the US position in the crypto space. On July 31, she presented Bill to establish “Strategic Bitcoin Reserve” program.

This initiative would direct the U.S. Treasury to acquire one million Bitcoins over five years, likening the program to the Strategic Oil Reserve. Lummis thinks so significant Bitcoin accumulation could strengthen the value of the US dollar and play a key role in solving the public debt problem, which currently stands at $35 trillion.

At the time of writing, the market’s largest cryptocurrency rose to $66,000 for the first time in over two months, following a significant 12% gain in September.

Featured image from DALL-E, chart from TradingView.com