Senator Cynthia Lummis of Wyoming has criticized the US Securities and Exchange Commission’s (SEC) recent action against Coinbase, stating that it “is not the right way to do business in America.” She made the statement during an interview with Yahoo Finance on June 22. Lummis said the cryptocurrency exchange had demonstrated its willingness to cooperate with regulators and repeatedly sought guidance from the SEC on how to comply with regulations. However, the SEC failed to provide an “adequate” response and instead chose to take enforcement action. She added that this approach “is not a good way to regulate; that’s not a good way to do business.”
Binance Action More Understandable
While Lummis criticized the SEC’s actions against Coinbase, she stated that she could “understand” why the regulator was targeting Binance, a “large” company that is not “domestic.”
Clarity in Regulatory Landscape
Lummis also spoke about the need to clarify the regulatory landscape for cryptocurrencies in the US. She confirmed that an updated version of her 2022 crypto regulation bill would be released soon. Lawmakers are working on establishing a framework to determine whether a cryptocurrency is a commodity or a security, which will help establish a foundation for future regulation. The senator stated that this framework will preserve the Howey test, which is used to determine whether a transaction involves an investment contract and is therefore a security.
Updated Bill Addresses Concerns
The updated bill will address various concerns raised after its initial submission, including issues related to the illicit use of digital assets. Lummis stated that the bill will ensure that there are enough “personnel and authorities” to combat illicit activity. It will also enhance consumer protection-related components and establish a “self-regulatory organization” to handle new technologies and shepherd them through the regulatory process.
In summary, Senator Cynthia Lummis criticized the SEC’s action against Coinbase and stated that it does not reflect the right way to do business in America. She also discussed the need to clarify the regulatory landscape for cryptocurrencies in the US and confirmed that an updated version of her crypto regulation bill would be released soon. The bill will address concerns related to illicit activity and enhance consumer protection, while also establishing a self-regulatory organization to handle new technologies.