Pro-crypto Sen Cynthia Lummis has filed an amicus brief to support the Coinbase against the US SEC.
Senator Cynthia Lummis, a pro-crypto Republican, is intensifying her fight against the US Securities and Exchange Commission (SEC) policies under former Chair Gary Gensler in support of Coinbase Global Inc.
According to The Block, Lummis recently filed a 29-page amicus brief supporting Coinbase’s appeal against the SEC’s lawsuit. Her legal brief accused the regulatory agency of overreaching in its ongoing case, undermining Congress’s authority over digital assets.
The Case Against Coinbase: Lummis Steps In
The SEC’s lawsuit against Coinbase has become a flashpoint in the debate over the agency’s regulatory overreach. The agency accused Coinbase of operating as an unregistered exchange, broker, and clearing agency.
In response, Coinbase filed an appeal, arguing that the SEC’s actions are unjust and unconstitutional. The exchange claimed the lawsuit infringed on Congress’s authority to create laws.
Binance asked for clearer rules on how federal securities laws apply to crypto. The SEC’s refusal to approve the exchange’s request led to calls for court intervention. As reported by Coinspeaker, the court sided with Coinbase, ordering the SEC to clarify its decision to reject the petition for crypto-specific regulations.
Senator Lummis, a staunch crypto and blockchain technology advocate, backed Coinbase’s position. In her brief, Lummis argued that the SEC’s aggressive approach to crypto registration is legally flawed and fundamentally un-American.
She criticized the agency’s classification of many digital assets as securities under Chair Gary Gensler. This move enforces strict registration rules that do not fit well with how digital assets work.
The Republican Senator criticized the SEC for being secretive and unfair in enforcing rules. She accused the agency of changing securities laws without being open or accountable. She emphasized that Congress, not the SEC, has the constitutional authority to set the securities and commodities regulation framework.
Lummis emphasized the need for clear and fair laws to guide the future of the crypto industry. She urged the Second Circuit Court to step in and define the limits of the SEC’s authority.
Shifting SEC Stance Under a New Administration
Senator Lummis is gaining influence, especially with her new role as chair of the Senate Banking Committee panel focused on digital assets. She is working on bills to define the SEC’s role and pushing for laws that create a fairer balance for crypto regulation.
This includes one that would have digital asset exchanges register with the US Commodity Futures Trading Commission (CFTC) instead of the SEC. With President Donald Trump now in office, Senator Lummis expects the landscape for crypto regulation to undergo significant changes.
President Trump has nominated Paul Atkins, a crypto-friendly former regulator, as the new head of the SEC. Many in the crypto community hope the agency’s stance on digital assets could become more favorable.
This is due to Atkins’s background in supporting less stringent regulations for digital assets. This shift could lead to clearer guidelines and boost confidence in the market.
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