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“SEC is overreacting on crypto,” says Sen. Cynthia Lummis

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TL;DR

  • Senator Cynthia Lummis deems the SEC regulatory actions on crypto as unnecessary and out of line, saying, “I think the SEC is overreaching.”
  • The Senator, who is a big crypto fan, has vowed to block part of the agency’s new policies that have been controversial.
  • Senator Lummis’ main agenda is working towards the provision of clarity in Washington over the crypto industry, encompassing all fronts, including regulation and policy frameworks. 

The United States Securities and Exchange Commission (SEC) has been making lots of moves against the crypto industry, placing allegations on major payers in the digital space. Their actions against cryptocurrencies have been met with heavy scrutiny among members of the crypto community, including top officials who are supporters of digital currencies. 

Senator Cynthia Lummis expressed her comments on the regulatory authority’s actions on crypto and addressed the aggressive nature the firm is taking, deeming it unnecessary. She has been quoted saying the authority needs to lay back on its actions without bias. 

The SEC’s aggressive effort on cryptocurrencies 

The US Securities and Exchange Commission has been aggressively pursuing major crypto players in ascertaining their reign and authoritative power. Among the big crypto firms implicated in allegations raised by the regulatory authority include Ripple Labs, Binance, and Coinbase. 

However, its moves have generated a lot of commentary, and Sen. Lummis expressed her thoughts, stating, “I think the SEC is overreacting.” 

Sen. Cynthia Lummiss (R-Wyo) is a big fan of cryptocurrencies, and the SEC crackdown made her comments rather harsh. Based on their recent comments, she has vowed to block part of the agency’s new policies that have been controversial. The major policy that has been contradictory is the March 2022 policy that affects the crypto industry. 

The “Staff Accounting Bulletin 121” is the policy in question that explains that any financial firm holding customers’ digital currencies needs to prepare a balance sheet, and it warns investors of the risks of safeguarding these digital assets. 

The GAO stated that Congress has yet to approve this policy, and the SEC did not see this successfully. As a result, Sec. Lummis ought to block the regulatory authority from binding the policy and has cited its actions as overreaching beyond their power. 

She believes her efforts’ backing is anticipated from other members of the Senate as well as the House. Sen. Lummis’ main issue on the policy is the implications to the crypto users who might get hurt in the custodian to their digital assets collapse. 

In an interview with Finance Yahoo, Lummis said, “It’s not a common-sense rule.” Lummis told Yahoo Finance Live in an interview. “It was issued as a staff bulletin, but the bulletin is binding.” 

Sen. Lummis’ agenda on SEC crypto policies

Lummis’ main agenda is working towards the provision of clarity in Washington over the crypto industry, encompassing all fronts, including regulation and policy frameworks. Among these targets is the crypto regulation correspondence with Sen. Kristen Gillibrand (D-N.Y), which aids in knowing how the frameworks are regulated. 

Sen. Lummis expresses her confidence in the same interview, basing her agenda on successfully being implemented in 2024 and amending various legislation pieces in the crypto industry. She intends to tuck these policies into their legislative packages. 

However, a recent portion of her bill on terrorist dealings in financing activities was tucked into the Senate’s defense spending package. This was based on the National Defense Authorization Act, and now the legislation is being ignored by the House. Lummis is still optimistic and said:

 It is something that is so clearly needed, as illustrated by the concerns that Hamas is using cryptocurrency to help finance its savage treatment of Israeli civilians and military personnel. It would help.

Sen. Cynthia Lummiss (R-Wyo)

The Senator also said she has her full support placed on the crypto frameworks of the House Financial Service Committee that was led by Patrick McHenry (R-N.C), the Committee Chair. Moreover, Lummis is okay with whichever body can move the legislation first. She said:

 Sen. Gillibrand and I see the small differences between the House and the Senate versions specifically related to stablecoins, and we know they’re resolvable […] So I think we’re going to be able to get to a resolution on stablecoins now that the House has a new speaker and they’re again open for business.

Sen. Cynthia Lummiss (R-Wyo)

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decision.

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Florence Muchai

Florence is a crypto enthusiast and writer who loves to travel. As a digital nomad, she explores the transformative power of blockchain technology. Her writing reflects the limitless possibilities for humanity to connect and grow.

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