During an interview with Yahoo Finance on June 22, US Senator Cynthia Lummis criticized the Securities and Exchange Commission’s (SEC) recent enforcement action against cryptocurrency exchange Coinbase, despite the company’s attempts to comply with regulators. She was perplexed as to why the SEC would take such action against Coinbase when the company had publicly shown its willingness to cooperate with regulators and repeatedly asked for guidance on how to comply with regulations properly.
Senator Lummis also spoke about the need for regulatory clarity in the US. She confirmed that an updated version of her 2022 crypto regulation bill would be released soon, which aims to establish a proper framework for determining whether a cryptocurrency is a commodity or a security. This framework will preserve the Howey test, according to the senator, which will help establish a foundation for future regulation.
Binance’s Enforcement Action
Senator Lummis also remarked on the SEC’s enforcement action against Binance, saying that she could somewhat understand why the regulator was going after the company as it is a large company that is not domestic.
Consumer Protection and Self-Regulation
The updated bill also addresses various concerns raised after its initial submission, including issues related to the illicit use of digital assets. The bill beefs up consumer protection-related components and establishes a self-regulatory organization that will handle the advent of new technologies in the future and shepherd them through the regulatory process. Senator Lummis believes that this organization will help ensure that new technologies are properly regulated without stifling innovation.
Senator Lummis believes that the SEC’s recent enforcement action against Coinbase was not the right way to do business in America. She believes that a proper regulatory framework is necessary to ensure that cryptocurrencies are regulated properly without stifling innovation. The updated bill aims to provide this framework while also addressing concerns related to consumer protection and the illicit use of digital assets.