- Senator Cynthia Lummis challenged SEC’s crypto crackdown, pushing for congressional oversight.
- Coinbase expands globally despite the SEC lawsuit, securing a VASP license in Argentina.
In a surprising legal move, U.S. Senator Cynthia Lummis has stepped into the Coinbase vs. SEC battle. She filed an amicus curiae brief in the U.S. Court of Appeals for the Second Circuit.
Lummis is challenging what she calls the SEC’s “legislation-by-enforcement” approach. She criticizes the agency’s regulatory crackdown under the Biden administration.
For context, the case revolves around the SEC’s allegations that Coinbase has been operating an unregistered trading platform, broker, and clearing agency.
Senator takes a jab at the SEC
In her recent brief, Senator Cynthia Lummis argued that the SEC overstepped its authority under former Chair Gary Gensler. She asserted that the SEC’s aggressive stance on crypto regulation contradicted Congress’s intended framework.
She accused the agency of reshaping securities laws to target digital asset platforms without proper legislative backing.
Lummis emphasized that such regulatory overreach undermines the crypto industry and raises concerns about the SEC’s unilateral approach to enforcing policies without congressional approval.
Taking to X (formerly Twitter) she said,
“The SEC’s approach under the Biden administration was to aggressively reinterpret case law governing Howey and investment contracts, keep those interpretations secret, and then demand compliance from digital asset exchanges.”
She added,
“Such an approach is un-American. It is the job of Congress to provide a legislative framework that clearly draws the line between a security and a commodity.”
Further stressing her confidence in Trump’s administration, she added,
“Under President Trump, we are bringing innovation back to America.”
What’s more?
Lummis argued that the agency’s actions disrupted the balance of power between the legislative and executive branches. She claimed this bypassed the role of lawmakers.
Interestingly, her remarks come just days after being appointed to lead the Senate’s Digital Assets Subcommittee.
She aims to set definitive guidelines for cryptocurrency regulation and integrate Bitcoin [BTC] into the U.S. financial system.
Despite the ongoing legal battle with the SEC, Coinbase remains steadfast in its global expansion. It recently secured a VASP license in Argentina as part of its commitment to regulatory compliance.
Gensler’s current journey
This development also coincides with former SEC Chair Gary Gensler’s return to academia at MIT Sloan School of Management, where he will focus on artificial intelligence, finance, and public policy.
That being said, his departure from the SEC marks a shift in leadership, leaving the future of crypto regulation uncertain yet positive given Trump’s pro-crypto stance.
