- U.S. Senator pushes for the passage of the Responsible Financial Innovation Act.
- Cynthia Lummis claims this act could have prevented the FTX collapse.
- The Senator tweeted that those affected by the FTX failure deserve justice.
U.S. Senator Cynthia Lummis, a strong proponent of bipartisan crypto legislation, tweeted on December 13 that the Lummis-Gillibrand Responsible Financial Innovation Act could have prevented the fall of FTX and will protect against similar future failures.
Lummis declared that the FTX collapse has only accentuated a “more emphatic enthusiasm” to resubmit the Lummis-Gillibrand Responsible Financial Innovation Act in the following month. She hopes this will establish unambiguous regulatory standards.
Lummis said:
The type of rehypothecation that was going on with FTX and some of the other attributes of FTX which caused it to fail would have been prevented had the Lummis-Gillibrand bill been in effect.
Lummis, a constituent of the Senate Banking Committee, and Senator Kirsten Gillibrand both support the Responsible Financial Innovation Act submitted in June.
The legislation would grant the Commodity Futures Trading Commission the authority to impose regulatory statutes for crypto.
Senator Lummis mentioned that another primary objective of the legislation is to clarify what can be considered a commodity or a security. She claims had this bill been passed earlier, the FTX crisis may have been circumvented stating,
The type of rehypothecation that was going on with FTX and some of the other attributes of FTX which caused it to fail would have been prevented had the Lummis-Gillibrand bill been in effect.
Lummis is viewed as one of the more seasoned Washington lawmakers regarding crypto. She alleges more legislation will help crypto buyers in the future however this is only speculative.
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