The US legislator is pushing for a non-partisan draft law to regulate crypto

A US Senator that urges cryptocurrencies to a stronger federal regulation, says that the collapse of the FTX exchange from Sam Bankman-Fried should be a catalyst for the legislator so that he begins to pay attention to crypto.

In an interview on the Crypto and Digital Assets Summit of the Financial Times, Senator Cynthia Lummis said that the failure of FTX, which has led to the lack of customer deposits of $ 8 billion, explains the need for more regulation in the emerging crypto industry. Lummis, a Republican from Wyoming, drove a bill as a solution, which she brought in in the congress together with Kirsten Gillibrand, a democratic senator from New York, together with Kirsten Gillibrand.

"I hope [FTX’s Collapse] to members of the Congress who have not taken the time to learn more about this investment class, emphasizes that it is time for you to learn more about it so that we can stand up for adequate regulation," said Lummis.

The senator gained celebrations in the congress as an early advocate of cryptocurrencies and bought her first Bitcoin almost a decade ago; She still has it, but keeps it in a blind trust.

She argued that customers like themselves use crypto wallets to store their digital assets and do not act actively with it, do not need any further supervision. Instead, she urges stricter rules for companies such as FTX who act with customer assets and keep them and deal with circular credit practices such as re -plunging, in which the same assets can be awarded several times.

"We do it with other types of assets when there is a plug -in. We also have to do it with cryptocurrencies," said Lummis.

lummis said that her crypto calculation would ban the mixing of customer assets with investments in a stock exchange-a practice that was the focus of the losses at FTX. It would also use the so-called Howey test, which is based on a precedent of the Supreme Court to determine which cryptocurrencies are or not. This clarification could help to enter the room more mainstream finance company.

Your bill remains in the Finance Committee of the Senate, and it stated that he would be "very hopeful" that he would "stand at the top of our legislative agenda" if the congress meets again in January.

In the meantime, Lummis said that she was working with the supervisory authorities of the US stock exchange supervisory authority Securities and Exchange Commission to ensure that their draft law would not create loopholes for some non-crypto companies to indulge.

"We hear from certain people within the SEC that the draft law could have some unintentional consequences that would enable the people currently regulated by the SEC to redefine their assets as digital assets under Lummis-Gillibrand and thereby have a lower level of regulation," said Lummis.

"This is not our intention. We don't want that to happen."