• US Senator Cynthia Lummis is criticizing the SEC for deciding to sue Coinbase.
• Lummis says that this is not the right way to do business in America.
• She is also introducing a bi-partisan bill with Democrat Senator Kirsten Gillibrand of New York to bring regulatory clarity to the digital asset space.
SEC Sues Coinbase
The U.S. Securities and Exchange Commission (SEC) recently decided to sue top US-based crypto exchange Coinbase, alleging that it operated as an unregistered securities exchange, broker and clearing agency. This has drawn criticism from Republican lawmaker from Wyoming, US Senator Cynthia Lummis who believes that the SEC has mishandled the situation.
Lummis Criticizes SEC’s Actions
In an interview with Yahoo Finance, Sen. Lummis expressed her disapproval of how the SEC handled Coinbase’s request for guidance on how to comply with their regulations and then slapping it with an enforcement action instead of properly addressing its questions. She said, “To me, that seems like it’s not the right way to do business in America.”
Bi-Partisan Bill To Bring Regulatory Clarity
Sen. Lummis is a Bitcoin (BTC) supporter and she plans on introducing an updated version of her bi-partisan bill together with Democrat Senator Kirsten Gillibrand of New York soon which will address consumer protection components and illicit use of digital assets while preserving Howey Test guidelines between what constitutes a commodity or security. The updated version will be available in about two or three weeks time according to Sen. Lummis.
Purpose Of Bill
The purpose of this bill is to provide regulatory clarity on new technologies by having both regulators and industry leaders come together so as figure out how they should be shepherded through a regulatory process effectively without hindering innovation in any way possible within the digital asset space while still protecting consumer rights at all times.
Sen .Lummis’ remarks have shed light on how important it is for regulators like the SEC to take into account requests from companies such as Coinbase when seeking guidance before dealing them enforcement actions if they fail to comply with regulations set forth by them in order ensure smooth flow of businesses operations within America without fear of being penalized wrongly or unjustly by authorities .