US Senator Cynthia Lummis states that Bitcoin contributes to environmental sustainability and aids in criminal investigations.

United States Republican Senator Cynthia Lummis from Wyoming engaged in a fireside chat with Perianne Boring, the founder and CEO of the Chamber of Digital Commerce, during the Bitcoin 2023 event held in Miami on May 19.

The discussion focused on the significance of Bitcoin for U.S. national and energy security, as well as forthcoming legislation related to cryptocurrency, blockchain, and associated technologies.

Lummis characterized the regulation of Bitcoin and related technologies as a matter of national security. She expressed concern that the U.S. government had been reckless with its debt and positioned Bitcoin as a decentralized safeguard for citizens:

“I’m actually worried as we go into another debt ceiling debate that we will eventually increase the debt ceiling to the point where our interest payments will exceed how much money we spend on national defense. So it is a national security issue.”

The senator emphasized her belief that the current difficulties in passing Bitcoin-friendly legislation were more related to what she viewed as ignorance or a lack of understanding rather than concerns based on reality.

Speaking to the audience, Lummis remarked, “Even though you all know that when FTX failed, they held zero Bitcoin, there are a lot of people in Washington D.C. that conflate companies with digital assets, they conflate Bitcoin with other cryptocurrencies.”

Lummis expressed hope that a bill she and junior New York Senator Kirsten Gillibrand have prepared as a comprehensive legislative measure for cryptocurrency will act as a catalyst for beneficial change. However, according to Lummis, the two senators are awaiting the outcome of a bill introduced in the House regarding stablecoins before moving forward with their own proposal.

Lummis appeared hopeful about the bill’s prospects, noting as a crucial factor that Gillibrand served on the Senate committee overseeing the Commodity Futures Trading Commission, while she herself was part of the committee responsible for the Securities and Exchange Commission.

Boring, the founder and CEO of the Chamber of Digital Commerce, redirected the conversation to mining, highlighting that her organization’s membership accounted for over 50% of the Bitcoin hash rate in the U.S. and that many of her clients were concerned about the recently proposed 30% mining tax by the White House.

While the mention of the tax drew boos, Lummis transformed the discontent into applause by simply stating, “Well, I want to start by saying that isn’t going to happen.” She then reiterated that several members of Congress were actively collaborating with the digital assets community to ensure fair regulation would follow.

In underscoring the necessity of proper regulation, Lummis reiterated that the issue was one of national security, adding that it was also crucial for the environment that the country leverage the Bitcoin mining process:

“One of the advantages of Bitcoin mining is that when you drill an oil and gas well, and it is distant from other oil and gas wells, you vent the gas into the atmosphere until you can bring in a pipeline to hook it up. […] Well, while that’s being vented, you can pull a Bitcoin mining operation in a trailer, use the vented methane gas to mine your Bitcoin, and you are preventing that gas from being vented into the atmosphere.”

The senator added, “Bitcoin is cleaning up the environment,” which elicited further cheers from the audience. She also noted that Bitcoin mining could serve as a mechanism to stabilize the energy grid, indicating that mining operations could be adjusted to ensure adequate energy distribution.

In discussing why the U.S. government had been hesitant to promote Bitcoin technologies, Lummis cited the belief among Congress that “Bitcoin and cryptocurrencies are being used for criminal activities.”

“We’ve tried to educate members of Congress that companies like Chainalysis can actually solve crimes easier with Bitcoin and cryptocurrencies than they can with U.S. dollars,” Lummis explained, adding, “but there are still people that just don’t believe that.” She further elaborated that pushing Bitcoin and related technological advancements, such as mining operations, overseas would undermine U.S. law enforcement’s ability to function in an increasingly digital landscape.

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