US Senator Cynthia Lummis said the SEC’s recent action against cryptocurrency exchange Coinbase, despite its efforts to comply with regulators, “is not the right way to do business in America.”
The Wyoming senator made the statement during an interview with Yahoo Finance on June 22. She said:
“I’m scratching my head on why they would do that with Coinbase.”
Lummis said Coinbase had publicly demonstrated its willingness to cooperate with regulators and had repeatedly asked the SEC for guidance on how to properly comply with the rules. However, the SEC failed to provide the company with an “adequate” answer and elected to take enforcement action.
She said:
“That’s not a good way to regulate; that is not a good way to do business.”
On the other hand, the senator said she could somewhat “understand” why the regulator went after Binance, as it is a “big” company that is not “domestic”.
Merchandise or security?
Lummis also spoke about bringing clarity to the regulatory landscape in the US and confirmed that an updated version of its 2022 crypto regulation bill will soon be unveiled to the public.
She said lawmakers are working to establish a proper framework for determining whether a cryptocurrency is a commodity or a security, which should help lay the groundwork for future regulation.
This framework will preserve the Howey test, the senator said.
Lummis said the updated bill addresses several concerns raised after the initial filing, including issues related to the unauthorized use of digital assets by ensuring there are enough “staff and authorities” to combat it.
She said the bill strengthens components related to consumer protection and also establishes a “self-regulatory organization” that will handle the arrival of new technologies in the future and “guide them through the regulatory process.”
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