• US Senator Cynthia Lummis has criticized the SEC for their decision to sue Coinbase.
• She believes that the SEC mishandled the situation by not providing adequate guidance to Coinbase.
• Senator Lummis is introducing an updated version of her bi-partisan bill with Senator Kirsten Gillibrand to bring regulatory clarity to the digital asset space.
Senator Cynthia Lummis Criticizes SEC’s Decision To Sue Coinbase
US Senator Cynthia Lummis from Wyoming has recently criticized the U.S. Securities and Exchange Commission (SEC) for deciding to sue the top US-based crypto exchange Coinbase. In a new interview with Yahoo Finance, she said that this was “not the right way to do business in America.”
Senator Lummis Supports Bitcoin
Senator Lummis is a supporter of Bitcoin (BTC) and is introducing an updated version of her bi-partisan bill with Democrat Senator Kirsten Gillibrand of New York to bring regulatory clarity to the digital asset space. This bill will focus on consumer protection components and address illicit use of digital assets, as well as preserve Howey Test while finding clear guidelines between what are commodities and what are securities.
Coinbase Allegations By The SEC
Earlier this month, the SEC sued Coinbase alleging that it had operated as an unregistered securities exchange, broker, and clearing agency without providing them with sufficient guidance on how to comply with regulations beforehand.
Updated Bill On Regulatory Clarity
The updated version of the bi-partisan bill introduced by Senators Lummis and Gillibrand will also include a self-regulatory organization which will help regulators find ways to shepherd new technologies through a regulatory process when they come along. It is expected to be released in two or three weeks time.
It remains to be seen how effective these measures will be in bringing greater regulatory clarity into the digital asset space but hopefully it can provide some much needed protection for investors while allowing innovation in this sector flourish without unnecessary hindrance from regulators.