Wyoming Senator, Cynthia Lummis, a proponent of digital assets, has slammed the US Securities and Exchange Commission’s (SEC) management of cryptocurrency regulations. In an interview on CNBC’s Squawk Box, Lummis took aim at SEC Chair Gary Gensler for his stance on the cryptocurrency market, describing it as unproductive and troublesome.
Lummis emphasized that the US crypto industry faces numerous challenges, exacerbated by the SEC’s current strategies. She criticized Gensler for resorting to enforcement actions instead of offering clear guidelines, leading to widespread uncertainty and legal disputes among digital asset companies.
According to Senator Cynthia Lummis, the SEC’s approach has hampered the growth of the cryptocurrency sector and hindered the establishment of regulatory clarity. She pointed out that the existing legal framework is inadequate, especially compared to the EU’s comprehensive crypto laws enacted in 2023, potentially jeopardizing the US’s competitive edge in global financial services.
In advocating for change, Lummis suggested that crypto assets like Bitcoin and Ethereum should come under the jurisdiction of the Commodity Futures Trading Commission (CFTC) rather than the SEC. She highlighted the need for Congress to enact legislation to define the roles of different agencies in regulating digital assets, ensuring a current and transparent regulatory framework.
Moreover, Lummis called for revisions to regulations such as the Howey Test, which evaluates an asset’s security status, to reflect the evolving crypto market landscape. In contrast, SEC Chair Gary Gensler defended the existing regulatory framework, asserting that the US already has relevant regulations in place to safeguard investors and address public interest in digital assets.
Lummis underscored the necessity of legislative changes to address regulatory gaps, proposing collaborations with other lawmakers to enhance the CFTC’s oversight capabilities in the digital asset space while maintaining the industry’s growth potential. Additionally, she and her colleagues raised concerns about SEC’s policies, urging the withdrawal of Staff Accounting Bulletin 121 (SAB 121) due to overregulation impacting crypto custodians.