In a recent news report, Senator Cynthia Lummis stated that the United States Securities and Exchange Commission is probably overreacting to cryptocurrency as she claimed the commission is making unnecessary legal actions against firms that offer crypto-related products and services. She promised to stop part of the regulator’s new controversial regulations.
Recently, the United States financial regulators, including the Securities and Exchange Commission and the Commodity Futures Trading Commission (CFTC), have been keen on regulating the fast-growing cryptocurrency industry, reeling out stringent rules and regulations that hold many crypto-related services and businesses in constraints. Seeking redress, the crypto community had shown dissatisfaction with the development of this.
Senator Lummis Says SEC Is Overstepping Its Boundary
Furthermore, Senator Cynthia Lummis, who is a famous advocate of cryptocurrency, reportedly remarked that the recent regulatory actions the US SEC is taking on cryptocurrency are extreme and out of line, stating that the regulatory body is overreaching its oversight boundary. The Senator is believed to be pushing for the creation of clarity in all crypto regulations and policy frameworks. Senator Lummis said that the aggressive approach of the regulator towards crypto is uncalled for, advising the SEC to lay back on its regulatory actions with no prejudice.
According to the report, the American SEC has been dishing out legal actions against major players in the crypto industry in order to establish its strong oversight over the industry. Many prominent crypto exchanges have been previously caught in the vast web of the SEC’s legal actions accusing them of violating one securities law or the other, and the firms include Binance.US, Coinbase, and Ripple Labs.
Lummis To Prevent Some SEC’s Policies
Furthermore, as part of her advocacy for crypto, Senator Lummis vowed that she would prevent some of the new policies that the SEC introduced in March 2022 as standard to regulate the crypto industry and awaiting approval. The report showed that the Staff Accounting Bulletin 121, which was part of the policies the regulatory body introduced, aroused several questions.
According to the report, the policy requires crypto exchanges to prepare a balance sheet for their digital assets holding while warning investors of the risks involved in holding crypto assets. Currently, the policy is still pending approval from the Senate. Meanwhile, Senator Cynthia Lummis planned to prevent the SEC from getting the policy approved as she claimed the SEC would be overstepping its regulatory boundary via the procedure.
In addition, the lawmaker report hopes to receive substantial backing from other senate members who also advocate for cryptocurrency. Also, in a recent interview, Lummis stated that the rule is not a common-sense one, claiming it was introduced as a staff bulletin while it is binding. She wants to ensure there is clarity over the regulation of the crypto industry in Washington.
Senator Advocate For Her Bill’s Approval
Furthermore, Sen. Lummis said during the interview that her agenda would be successfully enforced in 2024, and many legislation pieces concerning the crypto industry would be reviewed and amended as she plans to tuck the policies, re-arranging them into their legislative pockets.
According to a report, one of her bills focusing on terrorist activities and finance dealings was tucked into the spending package of the Senate’s defense based on the National Defense Authorization Act. But the House is reportedly shunning the policy, however, Lummis remains optimistic, stating that the rule is needed as terrorist funding via digital assets is becoming rampant and needs urgent attention.
In addition, Senator Lummis stated that she has the support of Patrick McHenry, the head of the House Finance Committee. Lummis wants the regulation to be moved, regardless of the party that lifted it first. She added that Senator Gillibrand and herself only noticed slight differences between the Senate’s and the House’s perspective on stablecoins, which can be dealt with efficiently. She said a new resolution might pop up for stablecoin as the House recently elected a new leader.
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