The US presidential election is coming up! The American Securities and Exchange Commission (SEC) has come under fire from Wyoming Senator Cynthia Lummis for its handling of cryptocurrency regulation.
She recently criticized SEC Chair Gary Gensler for utilizing enforcement actions instead of establishing clear regulations for the industry during a recent interview on CNBC’s Squawk Box. Lummis contended that this approach generates uncertainty, resulting in numerous digital asset companies incurring legal disputes rather than prioritizing expansion.
Lummis underscored that the SEC’s ambiguous strategies present numerous obstacles for the U.S. crypto industry. She emphasized that the country is at risk of falling behind in the global financial market if clear regulations are not in place. Conversely, the European Union has implemented exhaustive crypto legislation, which could potentially disadvantage the United States.
Lummis’s conviction that Bitcoin and Ethereum function as commodities rather than securities is a critical component of her argument. The Commodity Futures Trading Commission (CFTC) should supervise these cryptocurrencies, rather than the Securities and Exchange Commission (SEC), she proposes. Lummis contends that the SEC’s present approach to classifying decentralized assets such as Bitcoin and Ethereum as securities is inconsistent with their nature. She is of the opinion that Congress must establish explicit legislation to specify the responsibilities of various agencies in the regulation of digital assets.
Lummis, in collaboration with Senator Kirsten Gillibrand, has suggested modifications to the laundry sale regulations in order to resolve these regulatory deficiencies. All of these modifications would improve the CFTC’s capacity to regulate digital assets more efficiently. Lummis contends that such modifications would contribute to the establishment of a regulatory environment that is both consumer-friendly and conducive to innovation.
Furthermore, Lummis has expressed reservations regarding the Staff Accounting Bulletin 121 (SAB 121) issued by the Securities and Exchange Commission (SEC). She believes that this regulation imposes unnecessarily heavy burdens on the industry by mandating that crypto custodians consider customer assets as liabilities. Lummis and other legislators have advocated for the withdrawal of SAB 121 in order to alleviate these pressures.
Also Read: MiCA threatens to relocate cryptocurrency firms to the Middle East
Wallets