Senator Cynthia Lummis has emerged as a vocal opponent of the Securities and Exchange Commission’s (SEC) recent push to regulate the cryptocurrency industry. In a recent interview with Yahoo Finance, Sen. Lummis expressed her strong disapproval of the regulator’s efforts, citing concerns that the agency is overstepping its bounds in its pursuit of cryptocurrency oversight.
One of the SEC’s policies, known as “Staff Accounting Bulletin 121” and issued in March 2022, has drawn particular scrutiny from Sen. Lummis. This policy mandates that firms holding customers’ cryptocurrency assets must maintain their own balance sheets and provide investors with warnings about the potential risks associated with digital asset storage. In certain circumstances, the policy can become legally binding, a factor that Senator Lummis finds troubling.
“It’s not a common-sense rule,” Senator Lummis declared during her Yahoo Finance interview. “It was issued as a staff bulletin, but the bulletin is binding.”
In response to these concerns, Sen. Lummis is actively working on a piece of cryptocurrency legislation, which she is co-sponsoring with Senator Kirsten Gillibrand. The proposed legislation aims to bring clarity and coherence to the regulatory landscape for the cryptocurrency industry in Washington.
Furthermore, Senator Lummis has thrown her support behind the crypto framework presented by the House Financial Services Committee, led by Committee Chair Patrick McHenry. This collaborative approach is seen as a potential path towards creating comprehensive and balanced cryptocurrency regulations that will ensure the industry’s long-term success.
Senator Lummis remains optimistic that her legislation will pass through the legislative process in early 2024 and anticipates that some of its key provisions may find their way into other significant legislative packages. She emphasizes the urgent need for a well-defined and transparent regulatory framework in the cryptocurrency space.
“We’re crying out for a clear regulatory framework here,” Senator Lummis asserted. With her unwavering commitment to the cause, she believes she can rally support from both the Senate and the House in the coming weeks.
As a prominent figure within the Grand Old Party, Senator Lummis is spearheading an initiative to ensure that the cryptocurrency industry is subjected to clear, equitable, and sensible regulations instead of overreaching policies. For her and other leaders in the United States, clarity and fairness are paramount when it comes to cryptocurrency regulation.
With her efforts, Senator Lummis hopes to lay the groundwork for a regulatory framework that promotes the growth and stability of the cryptocurrency industry in the years ahead. By challenging the contentious policy of the SEC and pushing for sensible legislation, Senator Lummis aspires to protect the interests of both consumers and the industry itself, setting the stage for cryptocurrency to thrive in the United States.
Source: Yahoo Finance
