- Senator Cynthia Lummis stands against the SEC’s crypto crackdown, deeming it an overreach, and vows to block a controversial policy.
- The SEC’s “Staff Accounting Bulletin 121” faces opposition from Lummis, who believes it could have adverse consequences for consumers and the crypto industry.
Senator Cynthia Lummis (R-Wyo.) has expressed strong concerns about the actions taken by the United States Securities and Exchange Commission (SEC) in their ongoing crackdown on the cryptocurrency industry. In a recent interview with Yahoo Finance, she voiced her opposition, citing what she perceives as an overreach by the SEC.
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SEC’s Aggressive Measures
The SEC has been aggressively pursuing regulatory measures in the crypto industry, including legal actions against major players like Coinbase and Binance. One of the key policies issued by the SEC in March 2022, known as “Staff Accounting Bulletin 121,” has attracted significant attention.
This policy mandates that financial institutions holding customers’ crypto assets include them on their balance sheets while also warning investors about the risks associated with safeguarding these assets. Recently, the Government Accountability Office (GAO) questioned whether the SEC had followed the appropriate procedures by not seeking Congress’s approval for this policy guidance.
Lummis’ Opposition
Senator Lummis, an outspoken critic of the SEC’s actions, has made it clear that she aims to prevent “Staff Accounting Bulletin 121” from becoming legally binding. She views this policy as an example of the SEC’s overreach and is determined to garner support for her efforts in both the Senate and the House.
Lummis expressed her concerns about the potential consequences for consumers if a digital asset custodian were to collapse due to this policy. She emphasized that the bulletin, even though initially issued as a staff bulletin, carries significant regulatory weight.
Legislative Efforts
In addition to opposing the SEC’s actions, Senator Lummis is actively working on legislation that would provide the cryptocurrency industry with much-needed regulatory clarity. She has co-sponsored a comprehensive crypto bill with Senator Kirsten Gillibrand (D-N.Y.), aiming to outline how the sector should be regulated.
Lummis is optimistic that her legislation could pass in early 2024, and she is open to integrating parts of it into other legislative packages, as recently demonstrated with a portion of the bill addressing terrorist financing.
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Focus on Stablecoins
One of the issues that Senator Lummis is actively addressing is stablecoins. She has been collaborating with Committee Chair Patrick McHenry (R-N.C.) of the House Financial Service Committee to ensure that a clear regulatory framework is established. While there are some differences between the House and Senate versions of the bill, Lummis is confident that they can be resolved. She anticipates making significant progress before the year’s end.
Also Read: PayPal Subpoenaed by SEC Over PYUSD Stablecoin
Final Takeaway
Senator Cynthia Lummis is a prominent advocate for the cryptocurrency industry. She opposes the SEC’s regulatory actions, particularly the controversial “Staff Accounting Bulletin 121,” and is actively working on legislation to provide much-needed clarity and regulation for the crypto sector. Her collaboration with fellow lawmakers and her dedication to addressing the challenges faced by the industry show that crypto still has some support in government.
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