AssetsDec 13, 2022

Bitcoin should be included in the portfolio of pension funds, Senator Lummins believes

The American senator once again shows a favorable attitude towards the largest of the cryptocurrencies.

Bitcoin was appreciated by the US senator from the state of Wyoming. Although the cryptocurrency has lost a significant amount of value in the face of this year's bear market, Cynthia Lummis believes it should be added to pension funds. A member of the Republican Party has previously shared such an idea, urging Americans to use BTC as part of a diversified investment strategy.

Bitcoin praised by US senator

Everything indicates that Cynthia Lummis is still a supporter of the leading cryptocurrency, even though it has become cheaper by over 75% since its price peak, which it reached in November 2021.

A member of the Republican Party once again shared the idea that BTC should be included in the investment portfolio of pension funds. In the opinion of this senator, Bitcoin is different than most digital currencies.

This is not the first time this woman has expressed her positive attitude towards Bitcoin. Already in June 2021, she called on Americans to use this cryptocurrency during a speech at the CNBC financial advisers summit. Back then, she mentioned the possibility of adding BTC to her retirement plans as part of a diversified strategy.

Cynthia Lummis believes in future significant increases in the value of the leading cryptocurrency. She bases her beliefs on the limited supply of BTC. There will be no more than 21 million coins in total.

BTC in the grip of a bear market

While a year ago, one Bitcoin cost about $ 68.7 thousand, now its price oscillates around only $ 17 thousand. The declines in the virtual currency market deepened with a series of negative news that caused global panic among investors. The BTC exchange rate recorded this year's bottom at the level of $ 15.5 thousand after the spectacular bankruptcy of the FTX exchange. It is worth adding that earlier this year, the leading cryptocurrency was also hit by the collapse of Luna.

Although the digital currency space has been turbulent in recent times, the US senator noted that the collapse of another cryptocurrency platform has increased enthusiasm for establishing robust and clear regulations for this industry. The new legislation should focus on benefiting those involved in trading digital assets.

Cynthia Lummis is the co-author of the proposal for a single legal act that would clearly state which virtual currencies should be considered as commodities or securities. In her opinion, Bitcoin is the only cryptocurrency that can be assigned to these categories.