Senator Cynthia Lummis has publicly criticized the US Securities and Exchange Commission’s (SEC) recent action against cryptocurrency exchange Coinbase, stating that it is not the right approach to regulate the crypto industry in America. Lummis, a senator from Wyoming, expressed her concerns during an interview with Yahoo Finance on June 22.
Lummis noted that Coinbase had made clear efforts to comply with regulatory requirements and had repeatedly sought guidance from the SEC on how to properly adhere to the rules. However, the SEC failed to provide an adequate response and instead chose to take enforcement action against the exchange. Lummis emphasized that this is not a good way to regulate or conduct business.
While Lummis criticized the SEC’s action against Coinbase, she acknowledged that she could somewhat understand why the regulator was going after Binance, as it is a large international company. She highlighted the difference in circumstances between Coinbase, which is domestic, and Binance, which is not.
In addition to discussing the SEC’s actions, Lummis also touched on efforts being made by lawmakers to regulate the crypto industry. She revealed that an updated version of her 2022 crypto regulation bill will soon be made public. The bill aims to establish a clear regulatory framework to determine whether a cryptocurrency should be classified as a commodity or a security. Lummis believes that having this distinction will provide a foundation for future regulation.
Lummis stated that the updated bill addresses concerns that were raised after its initial submission. It includes measures to combat the illicit use of digital assets and enhance consumer protection. The bill also proposes the establishment of a self-regulatory organization that will guide new technologies through the regulatory process.
Overall, Senator Cynthia Lummis criticized the SEC’s action against Coinbase, emphasizing the need for a more appropriate and cooperative approach to regulating the cryptocurrency industry. She believes that the updated crypto regulation bill will bring clarity to the regulatory landscape in the US and help pave the way for effective and balanced regulation in the future.