Senator Cynthia Lummis has taken a firm stance against the Securities and Exchange Commission’s (SEC) recent efforts to exert regulatory control over the burgeoning cryptocurrency industry. In an interview with Yahoo Finance, Lummis openly voiced her discontent with the regulator’s actions, asserting that she views the agency’s approach as “overreaching.”
One of the SEC’s key policies, outlined in “Staff Accounting Bulletin 121,” unveiled in March 2022, mandates that firms holding customers’ cryptocurrency assets must maintain their own balance sheets and provide investors with explicit warnings regarding the associated risks of storing digital assets. While applicable in specific circumstances, Lummis contends that this directive could potentially harm consumers in the event of a collapse of a digital asset custodian. “It’s not a common-sense rule,” Lummis argued. “It was issued as a staff bulletin, but the bulletin is binding.”
In response to this policy and others of its ilk, Lummis is actively collaborating with Senator Kirsten Gillibrand (D-N.Y.) on a piece of cryptocurrency legislation aimed at offering clarity regarding the industry’s regulation within the nation’s capital. Additionally, Lummis extends her support to the House Financial Service Committee’s crypto framework, an initiative led by Committee Chair Patrick McHenry (R-N.C.). She remains optimistic that her legislation will secure passage in early 2024, with the potential for select provisions to be integrated into other significant legislative packages. “We’re clamoring for a lucid regulatory framework here,” emphasized Lummis.
In her steadfast advocacy for a balanced and transparent regulatory framework, Senator Lummis continues to lead the charge against overreaching SEC policies, ensuring that the cryptocurrency industry thrives with clarity and fairness for years to come.
With a commitment to impede the contentious SEC policy, Senator Lummis is poised to garner support from both the Senate and the House in the forthcoming weeks. As the standard-bearer of the Grand Old Party, she is at the forefront of the movement to ensure that the cryptocurrency industry is governed by transparent and equitable laws, rather than being subjected to overreaching policies. For Sen. Cynthia Lummis and other leaders in the United States, achieving clarity and equity in cryptocurrency regulation stands as a paramount objective. It is hoped that her endeavors will culminate in the establishment of a framework that not only safeguards the industry but also facilitates its flourishing in the years ahead.
Source: Yahoo Finance
