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- 1 Senator Cynthia Lummis says the SEC failed to provide a clear set of rules for the crypto industry.
- 2 The SEC is suing crypto exchanges to hide their failure to prepare a set of rules of the crypto industry.
SEC’s back-to-back lawsuits are troubling crypto companies, including centralized cryptocurrency exchanges. Opposing the SEC ‘s action, dozens of lawyers said that suing any crypto company is the reflex action of the SEC’s failure.
Senator Cynthia Lummis states, “The Securities and Exchange Commission has failed to provide a clear path for digital asset exchanges to register and, even worse, has failed to provide adequate legal guidance on what differentiates a security from the community.”
My statement on the SEC suing Coinbase, inc. https://t.co/5KNEM0IPSV pic.twitter.com/EgRIxrIcjj
— Senator Cynthia Lummis (@SenLummis) June 6, 2023
The criticism against the SEC is increasing in several parts of the world because the regulator is taking legal actions against exchanges and other tokens without providing any proper guidelines.
It is not uncommon for the SEC and CFTC to fight over commodities and securities. It is not clear whether cryptocurrencies such as Bitcoin, Ethereum, and several others are commodities or security.
In her statement, the senator said that the Congress needs to pass the Lummis-Gillibrands Responsible Financial Innovation Act. On June 6, the SEC sued Coinbase over allegations of selling unregistered securities.
SEC’s action against Coinbase and another leading crypto exchange has stirred the market. The market slipped over 3.50% in the June 6 trading session. Major crypto tokens and coins including Bitcoin, Ethereum, Pepecoin, and Dogecoin, declined between 5-15%.
Viral Statements of Senator Cynthia Lummis on Crypto
Senator Cynthia Lummis is often called ‘Crypto Queen.’ She came into the limelight after she proposed the bipartisan “Responsible Financial Innovation Act” to structure a proper set of rules for the crypto industry.
In February 2022, Cynthia Lummis proposed that the Federal Reserve should hold Bitcoin on its financial record. She added, “ I believe it’s brilliant for the Fed to purchase Bitcoin as it holds more than $40 Billion in unfamiliar money saves.”
Lummis has been supportive of crypto and crypto businesses for quite a while. The 67 year old legislator purchased her first Bitcoin in 2013 at $350.
Currently, Bitcoin is the most popular cryptocurrency. At press time, BTC was trading $26.806.44 with a 24-hour trading volume of around $24 Billion. In terms of 24-hour trading volume, Tether overtook Bitcoin and acquired 1st position in the market.
During an interview with Natalie Brunell, Cynthia Lummis said that Bitcoin conceptually resonated with her since she belonged to an Oil and Gas mining state. While serving as Wyoming’s state treasurer, she considered Bitcoin as an asset for investment because its ‘scarcity will continue to allow it to hold its value.’
Analysts believe that financial and civil regulators should prepare comprehensive rules for registering crypto exchanges in the region.
Not making regulations while legally torturing exchanges for compliance failure is unfair.
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational ideas only and do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
