Cynthia Lummis is a US Senator known as a pro-Bitcoin politician. In that respect, it is not surprising that Lummis feels comfortable adding Bitcoin to pension funds. However, at the time of writing, Lummis is one of the few politicians who is positive about Bitcoin.
Bitcoin is different
In conversation with news platform Semafor on Dec. 12, Lummis says the crypto winter hasn’t broken her confidence in Bitcoin. “I am very comfortable with people being able to include Bitcoin in their retirement plan because Bitcoin is just different from other cryptocurrencies,” said Lummis. The US Senator believes in Bitcoin mainly because of the absolute scarcity of 21 million units.
“I believe that the Bitcoin price will rise, because only 21 million will come into circulation. That is a personal belief based on scarcity. As far as other cryptocurrencies are concerned, we have yet to see,” said Lummis. This is striking, because in June 2021 she opted for some other currencies in the pension plan. Now she seems to have completely switched to Bitcoin and she no longer likes altcoins.
Lots of opposition
Lummis also has many opponents on Capitol Hill, including senators such as Elizabeth Warren, Tina Smith and Richard Durbin. They use the misery that is now raging through the market as an argument against Fidelity’s Bitcoin pension funds. In a Nov. 21 letter to Fidelity CEO Abigail Johnson, the senators cite the FTX debacle as a major reason to stay away from Bitcoin in retirement funds.
“As with all financial products, price fluctuations are an expected part of the market. It is rather short-sighted to believe that an industry downturn is an indication that long-term growth is no longer possible,” said Jonah Allon, representing Fidelity. Warren, Smith and Durbin are not the only negatives in US politics, Senator Jon Tester also said earlier this week that he “sees no reason” why crypto should exist at all.