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Wyoming Senator Cynthia M. Lummis has urged the US Securities and Exchange Commission (SEC) to dismiss its lawsuit against the cryptocurrency exchange Coinbase, arguing that it conflicts with legislative efforts.
Senator Lummis, a leading member of cryptocurrency policy and a member of the Senate Banking, Housing and Urban Affairs Committee, also argued in an amicus curiae brief that the SEC's regulatory stance interferes with the constitutional separation of powers .
lummis said:
Regulation of cryptocurrency assets is a priority for Congress, and there is now momentum to establish a balanced framework that promotes responsible innovation and protects consumers.
At the heart of the dispute is the issue of regulatory jurisdiction over cryptoassets . Many bills related to the classification and regulation of cryptocurrencies are actively discussed in Congress. These bills recognize the complex nature of the field and advocate a comprehensive approach that goes beyond a single agency.
Lummis notes that while the SEC is an important stakeholder, its view of cryptoassets as securities is at odds with the most anticipated legislative proposals. He argued.
In this case, asserting the SEC's authority runs counter to proactive legislative efforts. Congress has introduced several bills that address the role of various federal agencies in regulating cryptocurrencies.
The bills in Congress recognize that the crypto industry is not fully compliant with existing securities laws and requires a special framework. They describe the roles of various agencies, such as the SEC and the US Commodity Futures Trading Commission (CFTC), in regulating various aspects of the cryptocurrency ecosystem.
Lummis, along with New York Senator Kirsten Gillibrand , recently introduced comprehensive legislation aimed at regulating cryptoassets .
The SEC interferes with the role of Congress
Lummis argues that the SEC's attempt to expand its authority through executive action violates the constitutional separation of powers. The SEC's enforcement position, which treats cryptoassets as securities, departs from the traditional definition of "securities" established by Congress. This expansion of powers conflicts with Congress's legislative role in matters of economic and political importance.
The argument also emphasizes that the CEC's new interpretation of its powers violates the principle of separation of powers . Senator Lummis argues that the SEC cannot unilaterally redefine the classification of crypto-assets without express authorization from Congress. The move interferes with Congress's role and policymaking authority in shaping the regulatory landscape for the burgeoning cryptocurrency industry.
He said:
Whether called the "fundamental issues doctrine" or the basic separation of powers defense, Congress did not grant the SEC general authority to regulate this area, and adoption of the SEC theory impedes the SEC's legislative role .
Balancing regulatory framework with enforcement
Senator Lummis' main message is that Congress should establish a cryptocurrency regulator. The complexity of the cryptocurrency industry requires a comprehensive and well-thought-out framework that takes into account diverse interests and perspectives. Congress is better equipped to make important policy decisions that balance economics and trade-offs while ensuring consumer protection and responsible innovation.
As the courts weigh in on the SEC's action against Coinbase, the issue of regulatory jurisdiction remains important. Senator Lummis is an important voice in the ongoing legal battle between Coinbase and the SEC. This highlights the need for a clear and comprehensive regulatory framework that recognizes the unique characteristics of the cryptocurrency industry.
Senator Lummis , who supports the separation of powers in Congress, emphasizes the importance of democratic decision-making and balanced policy in the evolving world of cryptocurrency regulation. His intervention underscores the importance of maintaining a balance of power and ensuring that the regulatory framework for the cryptocurrency industry is the result of a comprehensive legislative effort, rather than unilateral agency action.
Cryptocurrency and tech advocacy groups unite against the SEC
Senator Loomis reiterates a coalition of cryptocurrency and technology groups, including notable names such as the Blockchain Association , the Crypto Innovation Council , the Consumer Technology Association and the Chamber of Progress. On Friday , they both filed a joint amicus curiae brief to dismiss the lawsuit.
The organizations say the SEC is seeking to significantly expand its powers. This expansion includes gaining control over the trading of almost all digital assets on secondary markets. The implications are significant because they will not only affect the trillion-dollar digital asset industry, but also open up the potential for surveillance of a wide range of other assets.
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