Pro-Bitcoin senator Cynthia Lummis has been inducted into the US Senate Banking Committee.
Her aim is to convince the new Treasury Secretary Janet Yellen of the merits of Bitcoin. She spoke about it in an interview with Anthony Pompliano, reported by Bitcoin.com, in which she reiterated her position on the queen of cryptocurrencies:
“I really see it as a great store of value for individuals, for corporations, and for government … It is an excellent store of value and that it should be part of every individual person’s investment portfolio”.
Cynthia Lummis is keen to work with Janet Yellen, with whom she has already interfaced. In this regard she said:
“This is an area where I think that she has an open mind. She has some of the same concerns that most do in financial technology. There are concerns about criminal or nefarious use of cryptocurrencies”.
This is nothing new: Janet Yellen has already stated that she is concerned about Bitcoin and cryptocurrencies precisely because of their illegitimate uses, even though, given the data, these represent only a minority.
Why Cynthia Lummis should support Bitcoin with the authorities
Cynthia Lummis will also be tasked with showing the positive sides of Bitcoin and cryptocurrencies. This could lead to less stringent regulation, which could lead to mass adoption.
After all, Bitcoin is becoming an increasingly popular asset for institutional investors, and stringent regulation would not make much sense.
To understand the extent of institutional investors’ entry into Bitcoin, one need only quote Ross Stevens of Stone Ridge Asset Management and NYDIG who during Microstrategy’s Bitcoin event told CEO Michael Saylor:
“A year ago, we had 25 institutional clients. Today, we have 280 institutional clients. We’ve got a pipeline in the onboarding process of 96. We’ve got over $6 billion in bitcoin now between what’s in the door and what’s committed from institutions … By the end of the year, I’m confident we’ll have over $25 billion of bitcoin”.
What might be of concern is precisely the risk that bitcoin might somehow be banned by the authorities. This is what Ray Dalio also said: the more successful Bitcoin is, the more there is a risk that regulators might fight it, because governments are the sole makers of monetary policies. Cynthia Lummis is the object of expectations of those who would like the authorities not to be too strict.