Stefani Reynolds/Pool via REUTERS
- Senators Kyrsten Sinema and Cynthia Lummis announced the formation of the Financial Innovation Caucus on Tuesday.
- The caucus will create legislation for the blockchain era and highlight responsible innovation in the financial system.
- Senator Lummis told CNBC bitcoin is "a very freedom friendly type of currency" that "provides great opportunity around the world."
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US Senators Cynthia Lummis (R-WY) and Kyrsten Sinema (D-AZ) announced the bipartisan Financial Innovation Caucus to help create legislation for the blockchain era on Tuesday.
The caucus is intended to "highlight responsible innovation in the United States financial system, and how financial technologies can make markets more inclusive, safe, and prosperous for all Americans," according to a press release from Senator Lummis' office.
The release cited a growing regulatory focus on digital assets, China's recent launch of the digital yuan, and moves by central banks to start their own central bank digital currencies, or CBDCs, as the reasoning for the creation of the caucus.
"The United States is the world leader in the global financial system, but that position is a privilege, not a right," Senator Lummis said.
"It is also a huge, often-underappreciated benefit to every American. We need to work together to bring our financial system into the 21st century in order to maintain our leadership and ensure that future Americans can enjoy the same opportunity and prosperity that we experience today," she added.
Senator Lummis has long been a supporter of cryptocurrencies and plans to speak during the Bitcoin 2021 conference in Miami on June 4 and 5.
Speaking to CNBC's "Squawk Box" on Tuesday, the Senator said bitcoin is "a very freedom friendly type of currency" that "provides great opportunity around the world for people whose governments get oppressive or allow inflation to run out of control."
In an interview with Dealbook after the announcement of the new caucus, Senator Lummis said the first priority for the new group will be educating current senators and government officials on new financial technology, including blockchain applications.
She also said the recent volatility in bitcoin reduced market excesses, including certain leverage and lending practices, and noted that mainstream adoption of crypto is already here.
Lummis and Sinema's new caucus will be focused on a number of issues, including:
- Responsible financial innovation
- Distributed ledger technology (blockchain)
- Digital assets
- Artificial intelligence and machine learning
- Data management
- Consumer protection
- Combating money laundering
- Faster payments
- Central bank digital currencies
- Promoting financial inclusion and opportunity for all
"Two of my most important jobs are keeping America safe and secure and supporting Arizona job-creation," Senator Kyrsten Sinema said of the newly formed caucus in a press release from her office.
"Boosting innovation in our financial system ensures the United States remains a global economic leader while expanding job opportunities in Arizona and across the country," she added.