SEC Crypto Regulation Challenged by Senator Lummis Stand

Senator Cynthia Lummis from Wyoming is standing up to the Securities and Exchange Commission (SEC) and cracking down on crypto companies. Talking to Yahoo Finance, she clarified she’s not happy with how the SEC handles things. She’s especially against a new rule the SEC wants to make official without asking Congress first.

SEC’s Tough Actions

Recently, the SEC has been challenging, taking legal action against big crypto companies like Coinbase and Binance. A rule from the SEC, made in March 2022, is getting much attention from Senator Lummis. It says companies that look after crypto for customers have to show these in their financial reports and tell investors about the risks.

But, the Government Accountability Office (GAO) said the SEC should’ve asked Congress before making this rule. Senator Lummis is working hard to stop this rule from being set in stone. She believes it’s too much and could harm people if a crypto company goes under.

Pushing for Clearer Rules

Senator Lummis is not just talking; she’s doing things. With Senator Kirsten Gillibrand from New York, she’s pushing a big crypto law to make things more transparent. They’re trying to sort out minor differences between the Senate and House versions, mainly about stablecoins, a crypto type. She’s hopeful that by early 2024, they’ll pass the law. They even got part of it into a big defense spending bill to address terrorist groups using crypto.

Concerns Over SEC’s Bulletin

Last week, a Democrat, Representative Wiley Nickel, called out the SEC for how it’s managing the new rule. He’s worried it could make digital assets less safe. Others in Congress are also worried. Representative Patrick McHenry thinks the rule could scare financial companies away from crypto.

In short, there’s a lot of back and forth about the SEC’s role in regulating crypto, and Senator Lummis is at the center, fighting for a balance that keeps everyone’s interests in mind.