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Pro-Bitcoin candidate wins Wyoming senate seat

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Former Republican congresswoman and current Bitcoin holder Cynthia Lummis has won a seat in the U.S. Senate against Democratic challenger Merav Ben-David.

According to a Nov. 4 report from Fortune, Lummis was an early adopter of Bitcoin (BTC), having first purchased the cryptocurrency in 2013 thanks to a tip from her son-in-law, Will Cole. Cole has served as the Chief Product Officer at blockchain financial services firm Unchained Capital since December 2019.

“Cynthia believes in the philosophy behind Bitcoin, not just that it is a new asset class,” said financial firm Avanti’s founder and CEO Caitlin Long. She later tweeted that Lummis want to defend Bitcoin “against federal encroachment.”

Lummis, who defeated Ben-David with 73.1% of the vote, will be acting as a lawmaker over a state that has been very accepting of crypto-friendly institutions.

San Francisco-based crypto exchange Kraken became the first cryptocurrency business to receive a charter to operate as a bank in the United States through Wyoming’s State Banking Board. Last week, Avanti announced the same board had given it unanimous approval to launch a crypto-friendly bank under the name Avanti Bank & Trust.

The University of Wyoming announced on Nov. 2 it would be launching a Center for Blockchain and Digital Innovation which will allow university students more opportunities to study cryptocurrency and blockchain technology.

The Republican senator’s BTC holdings makes her one of the few representatives in the U.S. Congress to own cryptocurrency. Some representatives including Florida congressman Darren Soto personally accept contributions in crypto, while The Chamber of Digital Commerce’s Political Action Committee launched an initiative in October to donate $50 BTC to campaigns for every member of congress as part of its efforts to promote crypto awareness.

Lummis served as the representative of the sole congressional district for the state of Wyoming from 2009 to 2017. She will be replacing outgoing Republican senator Mike Enzi.





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New York authorizes first Yen stablecoin operator in the US

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New York has given the first authorization to a stablecoin backed by the Japanese Yen to operate in the U.S.

Per a Dec. 29 announcement, the New York Department of Financial Services has granted Japanese firm GMO-Z.com a charter to handle U.S.D. and Yen-backed stablecoins in New York. 

Given New York’s status as a global center, the NYDFS is the most prominent state financial regulator in the U.S. It is also one of the most aggressive. A pass to operate in New York often opens up the rest of the country. 

GMO’s charter is as a limited liability trust company rather than a full bank, the principle difference being in authorization to handle deposits. While a stablecoin operator typically needs the ability to hold reserves of the pegged asset, GMO’s charter limits its rights to hold other kinds of deposits not central to its ability “to issue, administer, and redeem” its stablecoins. 

The right to issue such non-depository charters has been a bone of contention between state regulators like the NYDFS and national banking regulators in the U.S. 

GMO president and CEO Ken Nakamura said: “We’re breaking ground with our move to issue the first regulated JPY-pegged stablecoin, which many see as a safe haven asset.” 

The NYDFS recently made changes to its famous BitLicense, including a conditional format that buddies up newly licensed firms with existing licensees. The first conditional BitLicense went to PayPal, facilitating the launch of its new crypto services earlier this fall with the help of longstanding licensee Paxos.