Senator Lummis Describes SEC Crypto Rules as “Un-American” in His Legal Opinion
(
) Journalist
Share this article
- Senator Cynthia Lummis has called for congressional oversight following the SEC’s actions regarding cryptocurrencies.
- Despite facing a lawsuit from the SEC, Coinbase is actively expanding its operations globally and has recently obtained a VASP license in Argentina.
The United States is witnessing an unexpected legal turn as US Senator Cynthia Lummis intervenes in the Coinbase vs. SEC case by submitting an amicus curiae brief to the US Court of Appeals’ Second Circuit.
Lummis argues against what she perceives as “legislation-by-enforcement” tactics employed by the SEC while criticizing the Biden administration for its stringent regulatory posture.
The crux of this case revolves around allegations from the SEC claiming that Coinbase operated without proper registration as a broker, trading platform, and clearinghouse. Senator Lummins has stood up against these assertions directed at her advocacy for cryptocurrency regulation reform.
In her recent filing, she contended that under former Chairman Gary Gensler’s leadership, the SEC overstepped its jurisdiction. She asserted that their aggressive regulatory approach toward cryptocurrencies contradicts congressional intent behind existing frameworks. According to her, they have rewritten securities regulations to focus on digital asset platforms lacking adequate legislative backing. Lummis emphasized that this unilateral enforcement by the SEC diminishes congressional authority and jeopardizes growth within the crypto sector. She stated:
on X (previously known as Twitter),
Lummis criticized that under current administration directives, the SEC’s tactics involve an aggressive interpretation of Howey Contracts alongside investment contracts while maintaining secrecy around such interpretations before enforcing compliance on digital exchanges.
Additionally, she remarked:
Lummis described this strategy as “un-American,” urging Congress to establish clear distinctions between securities and commodities within future guidelines for regulation. She articulated concerns about how these actions disrupt equilibrium among government branches—executive versus legislative—and caution against circumvention of lawmakers’ vital roles. Her further comments gain significance considering her recent appointment chairing Senate Digital Assets Subcommittee where she’s set on establishing robust frameworks surrounding cryptocurrency integration into traditional financial systems.
This evolving narrative coincides with former Chairman Gary Gensler’s new academic role at MIT Sloan School focusing notably on artificial intelligence enhanced finance concepts along with public policy initiatives.
The shift in leadership heralds potential changes pertaining to regulations concerning cryptocurrencies; Some industry insiders remain optimistic especially given ex-President Trump’s favorable approach towards crypto.
.–>
