Senator Lummis Criticizes SEC’s Crackdown on Crypto Industry
In a recent interview with Yahoo Finance, Senator Cynthia Lummis expressed her disapproval of the Securities and Exchange Commission’s (SEC) intensified crackdown on the crypto industry throughout 2023. She criticized the aggressive nature of the SEC’s actions, deeming it unnecessary and overreaching.
Controversial Crypto Policy
Senator Lummis specifically opposed the SEC’s controversial new crypto policy, “Staff Accounting Bulletin 121,” issued in March 2022. The policy requires financial firms holding customers’ crypto assets to hold them on their balance sheets while cautioning investors about the associated risks. The Government Accountability Office recently stated that the SEC should have sought approval from Congress for this policy guidance.
Lummis Pledges to Block Policy
Senator Lummis pledged to block the policy from becoming binding, citing it as another example of SEC overreach. She expressed concerns that the bulletin could harm consumers if a digital asset custodian were to collapse.
Efforts to Bring Clarity to Crypto Industry
Senator Lummis highlighted her efforts to bring more clarity to the crypto industry in Washington. She co-sponsored comprehensive crypto legislation with Senator Kirsten Gillibrand aimed at outlining regulatory frameworks for the sector. Lummis hopes that the legislation could pass in early 2024.
Bipartisan Collaboration on Digital Asset Framework
Senator Lummis expressed her support for the digital asset framework proposed by the House Financial Service Committee, led by Committee Chair Patrick McHenry. She believes that the small differences between the House and Senate versions are resolvable, particularly regarding stablecoins.
Urgent Need for Regulatory Framework
Senator Lummis emphasized the urgent need for a clear regulatory framework in the crypto industry to foster innovation and protect investors. She aims to strike a balance between oversight and creating a favorable environment for the industry.
Hot Take: Striking a Balance Between Oversight and Innovation
Senator Cynthia Lummis criticizes the SEC’s aggressive crackdown on the crypto industry, particularly its controversial new policy. She pledges to block the policy and emphasizes her efforts to bring clarity to the industry through comprehensive legislation. Lummis supports the digital asset framework proposed by the House Financial Service Committee and believes that minor differences can be resolved. She highlights the urgent need for a clear regulatory framework to foster innovation and protect investors. With growing concerns about regulatory clarity, Lummis aims to strike a balance between oversight and creating a favorable environment for the rapidly evolving crypto sector.
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