US Senator Cynthia Lummis Criticizes SEC Lawsuit Against Coinbase as Inappropriate for American Business Practice

Cynthia Lummis

US Senator Cynthia Lummis Criticizes SEC’s Lawsuit Against Coinbase and Advocates for Regulatory Clarity in Digital Asset Space”

In a recent interview with Yahoo Finance, Senator Cynthia Lummis, a Republican representing Wyoming, voiced her concerns over the U.S. Securities and Exchange Commission’s (SEC) decision to sue Coinbase, the leading cryptocurrency exchange in the United States. Lummis believes that the SEC mishandled the situation surrounding Coinbase.

According to Lummis, Coinbase had approached the SEC seeking guidance on how to comply with the regulations imposed by the agency. However, they did not receive a satisfactory response and were subsequently faced with an enforcement action. In her view, this approach contradicts the principles of conducting business in America.

The SEC’s lawsuit against Coinbase, filed earlier this month, alleges that the publicly-traded company operated as an unregistered securities exchange, broker, and clearing agency.

Lummis, a staunch supporter of Bitcoin (BTC), also revealed that an updated version of the bipartisan bill she co-introduced with Democratic Senator Kirsten Gillibrand of New York in 2022 will be discussed in Congress. The aim of this bill is to establish regulatory clarity within the digital asset space.

The senator expressed her optimism, stating that the updated bill, known as the Lummis-Gillibrand Responsible Financial Innovation Bill, will be unveiled within the next two to three weeks. She emphasized the importance of enhancing consumer protection measures within the legislation.

The revised bill intends to address the illicit use of digital assets by allocating adequate resources and authority for effective oversight. While upholding the Howey Test, which determines the classification of securities, the bill aims to provide clearer guidelines differentiating between commodities and securities. Additionally, the proposed legislation seeks to introduce a self-regulatory organization that brings together regulators and industry leaders to navigate new technologies through the regulatory process.

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