Sen. Cynthia Lumis (R-WY) has unveiled a comprehensive US crypto legalization and regulation bill. His lead advisor for the initiative, Microstrategy CEO Michael Sayer, believes that bitcoin is a commodity, not a security.
The US crypto bill seems to have found support among crypto industry insiders from both the Bitcoin maximalist and the Ethereum/DeFi/Web 3.0 wing. And it has bipartisan support with sponsorships by Kirsten Gillibrand (D-NY) and Ted Cruz (R-TX).
What could be the reason for the US crypto bill classifying bitcoin and other cryptocurrencies as commodities rather than securities?
Bitcoin will be clearly labeled as a commodity
Because in promoting the bill before its unveiling, Sen. Lumis stated that if passed as law, it would differentiate between commodities, securities, stablecoins, central bank digital currencies and NFTs.
The fact that there will be absolutely no distinction between commodities and securities leaves bitcoin as the most impacting characteristic of a commodity.
Bitcoin is like a commodity in its value fluctuating, because of global macro price correlations with energy prices and inflation produced by computational rigs running BTC mining software because of the demand for a rare digital good that anyone can download. .
Other cryptocurrencies, essentially the use/purchase of equity tokens that can function not only as a cash payment and banking system, but also smart cash with features such as incentives for voting rights in a sophisticated, smart contract-enforced blockchain regime They are more like publicly traded equity securities in corporate organizations, which affects their value.
But Sen. Lumis’ US crypto bill will treat most cryptocurrencies as commodities.
Sailor Had “First Set of Eyes” on the Bill
But the real strong indicator that the bill will classify bitcoin as a commodity is that San Lumis’ principal advisor and “first set of eyes” was Michael Sayer, CEO of Microstrategy and advocate of crypto regulatory clarity.
Loomis said of Sailor’s help:
“Michael Sayler was one of our first looks at this because his expertise is long overdue and we wanted to make sure we had plenty of input before filing it.”
And in a recent interview on Lex Friedman’s popular Tech & Science YouTube podcast, the MicroStrategy CEO was very adamant about separating bitcoin as a stock and even other cryptocurrencies as a commodity. He repeatedly stressed that bitcoin does not equate to a security and explained why.
A security is a vested interest in an organization’s equity or financial assets, like a stock. Bitcoin is not owner’s equity in a particular company that provides a specific good in the business to generate profit for the owners.
This is the final agreement on the most secure account keeping network ever in Deflationary Depository Currency designed for this purpose.
Congress lobbying on crypto bill
It’s not just bitcoin extremists like Michael Sailor who are in talks with the government about the crypto bill. Ethereum investor Andreessen Horowitz’s Head of Crypto General Counsel and Decentralization, Miles Jennings, said about the crypto bill:
“It’s the starting point for discussions about what the law should look like. I think that’s one of the reasons we’re excited about it.”
So it appears that the legislative offices that drafted this bill have consulted with whale-sized leaders in both wings of the crypto industry.
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