Regulation
Senator Lummis slams Biden’s crypto crackdown, calls for legal clarity
Senator Cynthia Lummis is a strong supporter of the crypto community. In a bold position, she critical the Biden administration and regulators for their intensive scrutiny of the crypto market. As discussions around digital assets intensify, Lummis emerges as a key ally of the crypto industry, defending its interests in the regulatory landscape.
Senator Lummis strongly objects to the Justice Department’s recent view that non-custodial crypto software could be considered a money transfer service. She argues that this interpretation contradicts Treasury guidance, lacks logic and endangers fundamental property rights. Lummis, a strong supporter of Bitcoin and crypto, maintains a resolute stance against this DOJ position.
Lummis criticized the DOJ’s “hyper-aggressive” approach, saying it violates the rule of law. She also raised concerns about the Biden administration’s efforts to criminalize key aspects of the Bitcoin (BTC) network and decentralized finance (DeFi). The development comes amid increased regulatory scrutiny in 2023, driven in part by the Securities and Exchange Commission’s (SEC) intensified crackdown on the crypto sector.
Clash over crypto regulation
Senator Lummis has publicly criticized the SEC’s actions, particularly its new policy, “Staff Accounting Bulletin 121,” issued in March 2022. She believes the SEC has exceeded its authority by classifying most digital assets as “securities.” , which should be the role of Congress. Lummis emphasizes that Congress, not the SEC, should regulate virtual currencies. The senator argues that this policy encroaches on the legislative power of Congress.
Further challenging the opposing position, Lummis submitted a legal document supporting Coinbase’s legal dispute against the SEC, advocating for transparent and consistent regulations to guide the growth of the crypto industry. Its position emphasizes that regulatory clarity is essential to foster innovation while protecting individual property rights.
Following ongoing disputes, Senators Lummis and Gillibrand introduced a bill aimed at providing clearer guidelines for digital assets. This bill adopts the interpretation of the Howey test set forth by the Southern District of New York, promoting a more common-sense approach to regulating digital assets.
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