Senator Cynthia Lummis presents bitcoin as a retirement strategy
Senator Cynthia Lummis wants Americans to see cryptocurrency as a way to diversify their retirement and long-term savings – and she is already doing the same.
In a new interview with CNBC, the so-called ‘bitcoin-compatible’ US senator said she held around five BTCs today, buying for the first time when the cryptocurrency was at $ 330. Lummis said she encourages people to “buy and hold” as a way to save for their future.
“I’m concerned that all of our retirement funds are denominated in US dollars. Under diversification, having a very diverse asset allocation, you don’t have all your eggs in one basket,” he said. she declared. “I think one of the strongest long-term stores of value is bitcoin.”
For now, bitcoin is the only cryptocurrency in her wallet because it is the only one she thinks she “really understands”. Still, she acknowledged that her endorsement doesn’t mean bitcoin is the only useful crypto, saying Ethereum could have some benefits as well.
Through efforts like its recently formed Financial Innovation Caucus, it hopes to help regulation move forward to a place where cryptocurrencies like Bitcoin can be used as assets to diversify portfolios over the long term as well as as a medium of exchange.
“So whether you’re an employee who has a retirement fund – I’d love to see those retirement funds invested in bitcoin and other cryptocurrencies that are good stores of value – but I’d also like to see individuals can use bitcoin and cryptocurrencies of their preference that are secure, have overcome the obstacles of anti-money laundering and bank secrecy law, but allow people to use their cell phones to send each other stores of value, bitcoins. “
But it could be a difficult balancing act, according to Lummis.
According to Lummis, this will require complying with current anti-money laundering laws as well as the bank secrecy law without stifling rapid innovation in crypto. It will also require the creation of a crypto-related public infrastructure, like a digital dollar, while also tackling privacy concerns, she said in the CNBC interview.
“We don’t want to over-regulate or regulate traditional banks and non-fiat currency banks differently, because we want them to have a level playing field,” she said.