Senator Cynthia Lummis criticizes SEC’s action against Coinbase, says lawmakers are working on crypto regulation bill

U.S. Senator Cynthia Lumis said the SEC’s recent actions on cryptocurrency exchange Coinbase “are not the right way to do business in the United States,” despite trying to comply with regulators.

The Wyoming senator made the remarks in an interview with Yahoo Finance on June 22nd. she said:

“I am baffled as to why Coinbase would do such a thing.”

Lumis said Coinbase has publicly shown its willingness to work with regulators and has repeatedly sought guidance from the SEC on how to properly comply with the rules. However, the SEC was unable to give the company an “appropriate” response and instead chose to take enforcement action.

she said:

“It’s not a good way to regulate. It’s not a good way to do business.”

On the other hand, the senator said it was somewhat “understandable” why regulators would go after Binance because it is a “large” company that is not “domestic.”

Product or Security?

Lumis also spoke about clarifying the U.S. regulatory landscape, noting that her latest 2022 Cryptocurrency Regulation Bill It will be released to the public soon.

He said lawmakers are working to establish an appropriate framework for determining whether cryptocurrencies are commodities or securities, which should help establish a foundation for future regulation.

The framework would retain the Howie test, the senator said.

Lumis said the updated bill would ensure sufficient “personnel and authorities” to address various concerns raised after the initial filing, including issues related to the illegal use of digital assets. said to be dealt with by

He said the bill would strengthen elements related to consumer protection and create a “self-regulatory organization” to deal with the emergence of future new technologies and “guide them through the regulatory process.”

A post first appeared on CryptoSlate in which Senator Cynthia Lumis criticized the SEC’s actions against Coinbase and said lawmakers are working on crypto regulation legislation.