Two US senators have criticized the Securities and Exchange Commission’s (SEC) lawsuit against the US’s largest cryptocurrency exchange, Coinbase.
On June 6, the SEC sued Coinbase for violating securities laws by operating as an unregistered broker, exchange, and clearing house and offering unregistered securities through a staking program. The regulator also alleged that the exchange was offering unregistered security tokens such as ADA and SOL to US investors through its platform.
Senator Lumis said the SEC’s approach hurts consumers.
on June 6th statementSen. Cynthia Lumis said the SEC’s enforcement approach to regulation hurts consumers.
Lumis pointed out that financial regulators have failed to provide a favorable regulatory environment to allow digital asset exchanges to register and to provide “appropriate legal guidance on what distinguishes securities from commodities.” .
The senator said:
“True consumer protection requires building a strong legal framework that exchanges can comply with, rather than pushing the industry offshore and into the shadows. That’s why we need to pass the Innovation Act.”
Under Chairman Gary Gensler, the SEC has consistently encouraged cryptocurrency companies to register with the regulator. However, multiple cryptocurrency officials said the European Commission failed to provide a framework for trading these registered tokens.
Senator Lumis is a vocal advocate for the cryptocurrency industry and co-authored a bill with Senator Kirsten Gillibrand to clarify regulation of the emerging sector.
Senator Hagerty issued a warning.
Senator Bill Haggerty Said The SEC was weaponizing its role to crush the industry. The refusal to register Coinbase is indefensible, according to the lawmaker, given that financial regulators have approved Coinbase’s listing.
“Allowing companies to list and thwarting attempts to register them is indefensible.”
Hagerty added that Gensler’s organization will “listen to Congress.”
This isn’t the first time Senator Hagerty has criticized financial regulators. On March 9, he sent the following letter: letter He questioned several financial institutions why they were pressuring “financial institutions to cut off services to licensed and legally operating cryptocurrency and digital asset companies.”
Clearer crypto regulation first appeared on CryptoSlate after a US Senator denounced the SEC’s Coinbase lawsuit.