Senator Lummis Takes a Stand Against SEC’s Crypto Crackdown, Says the Commission is “Overreaching”
Senator Cynthia Lummis (R-Wyo.) has voiced opposition to the Securities and Exchange Commission’s ongoing crackdown on the cryptocurrency industry.
In an interview with Yahoo Finance, she expressed her concerns about the regulatory agency’s actions and vowed to block one of its controversial new crypto policies.
“I think the SEC is overreaching,” she said.
The SEC has been pursuing aggressive measures, including lawsuits against major players like Coinbase and Binance.
One particular policy issued by the SEC in March 2022, known as “Staff Accounting Bulletin 121,” has caught Lummis’ attention.
The policy requires financial firms holding customers’ crypto assets to include them on their balance sheets while also warning investors about the risks involved in safeguarding those assets.
However, the Government Accountability Office (GAO) recently stated that the SEC should have sought congressional approval for this policy guidance.
Senator Lummis is now determined to prevent this policy from becoming binding, citing it as an example of the SEC’s overreach.
She aims to gather support for her efforts in the Senate and the House within the next few weeks.
Lummis argues that the bulletin could potentially harm consumers if a digital asset custodian were to collapse.
Lummis is actively working on multiple fronts to provide the crypto industry with more regulatory clarity in Washington.
She has co-sponsored a comprehensive piece of crypto legislation with Senator Kirsten Gillibrand (D-N.Y.), which aims to outline the sector’s regulatory framework.
“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,” she said.
“So I think we’re going to
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