Senator Cynthia Lummis (R-WY) has unveiled a comprehensive U.S. bill to legalize and regulate cryptography. Its lead advisor to MicroStrategy CEO Michael Saylor believes bitcoin is a commodity, not a security.
The U.S. Cryptography Bill appears to have support among Bitcoin maximalist cryptography industry experts and the Ethereum / DeFi / Web 3.0 wing. And it has bipartisan support sponsored by Kirstin Gillibrand (D-NY) and Ted Cruz (R-TX).
Could this be the reason why the US Crypto Bill classifies bitcoin and other cryptocurrencies as commodities rather than securities?
Obviously, Bitcoin would be labeled as a commodity
Because in promoting the bill before it was introduced, Senator Lummis said that if passed, it makes a distinction between commodities, securities, stable currencies, central bank digital currencies and NFT.
The fact that there will be a distinction between commodities and securities leaves bitcoin with the most important feature of a commodity.
Bitcoin is most similar to commodities in their price changes due to the demand for scarce digital goods with correlations of global macroeconomic prices with energy prices and inflation generated by computer platforms running mining software BTC that anyone can download.
Other cryptocurrencies, basically use / equity purchases that can not only function as cash payment and banking system, but also smart money with features like voting rights incentives in a sophisticated and smart blockchain governance by contract which affects its value, more closely resembles listed shares. values in companies.
But Senator Lummis’s U.S. cryptocurrency bill will treat most cryptocurrencies as commodities.
Saylor was the “first pair of eyes” on the bill
But the real strong indication that the bill would classify bitcoin as a commodity is that Senator Lummis’ chief adviser and “first glance” was the CEO of MicroStrategy and the crypto-clarity advocate Michael Saylor .
Lummis said of Saylor’s assistant:
“Michael Saylor was one of the first to see him because his experience is long-standing and we want to make sure we have a lot of information before we release it.”
And in a recent interview on the popular technology and science podcast by Lex Fridman on YouTube, the CEO of MicroStrategy was very adamant about the distinction between bitcoin and stocks and even other cryptocurrencies as a commodity. He repeatedly insisted that bitcoin is not the same as a security and explained why.
A security is an interest acquired in the capital or financial assets of an organization, such as a stock. Bitcoin is not the capital of a specialized company that provides a specific asset to a company to generate profits for the owners.
This is the final settlement in a deflationary deposit currency in the safest account maintenance network ever deployed and designed for this purpose.
Crypto Bill Lobbying Congress
It’s not just bitcoin maximalists like Michael Saylor who have been in talks with the government about the cryptocurrency bill. Miles Jennings, general manager of crypto and head of decentralization for Ethereum investor Andreesen Horowitz, said about the crypto bill:
“This is the starting point for discussions about what the law should be about. I think that’s one of the reasons we’re excited.
It therefore appears that the whale-sized leaders of the two wings of the cryptographic industry were consulted by the legislative offices that drafted this bill.
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