Sen. Cynthia Lummis of Wyoming believes SEC Chairman Gary Gensler will likely step down from his role as head of the regulator next year.
She made the statement during CNBC’s Squawk Box on September 27 in response to the hosts’ comments that he “loves his job” and doesn’t want to leave it. She added:
“I don’t believe that will happen, especially if Donald Trump is elected president.”
However, she also said she cannot confirm whether this would be the case if Vice President Kamala Harris is elected.
Additionally, Lummis said Gensler “does not sufficiently recognize” that Bitcoin (BTC) and Ethereum (ETH) are commodities. Lummis went on to say that other cryptocurrencies could be commodities without naming them:
“We need to have a clear definition. The Howey Test is available to us, and since it has been updated, there may be other assets besides Bitcoin and Ethereum that would qualify for the Commodity Futures Trading Commission’s jurisdiction.”
Notably, Gensler reiterated during his appearance on Squawk Box on September 26 that the SEC considers Bitcoin a commodity. However, during a Congressional hearing on September 24, the SEC chairman did not comment on the status of Ethereum.
Congress should regulate crypto in the US
Lummis also addressed the need to regulate crypto in the US to provide clarity for businesses. She stated that the EU has been regulating the local market “very effectively” since 2023, and that the US should never let other countries take the lead in financial services.
The presenters also brought up Gensler’s recent comments about the need for clarity to promote the growth of the crypto industry in the US. Lummis agreed with the sentiment, stating that Congress should regulate crypto in the country.
She added:
“Part of the problem is that the SEC has said ‘we have all the tools we need to regulate,’ but the way they’ve applied them has led to lawsuits instead of regulating by setting clear rules. They regulate through enforcement actions.”
Lummis further argued that industry players do not understand what is wrong when the SEC only regulates by imposing sanctions.
Concluding her comments on crypto regulation, Lummis emphasized that regulators should not confuse fraudsters with crypto.
“You can commit fraud with yachts, with art, with coins, with minerals. It is not the asset itself that is fraudulent.”
