Lummis Questions SEC’s ‘Enforcement-Driven’ Tactics on Coinbase
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US Senator Cynthia Lummis Takes Stand Against SEC Overreach in Coinbase Case

US Senator Cynthia Lummis has filed an amicus curiae brief challenging the Securities and Exchange Commission (SEC) in the case of Coinbase vs SEC. Lummis is criticizing what she believes to be the SEC’s aggressive tactics under the Biden administration.

Lummis contends that the SEC, particularly under former Chair Gary Gensler, has exceeded its bounds by making significant legal interpretations without public scrutiny. She argues that these actions have imposed compliance burdens on digital asset exchanges without proper legislative backing from Congress.

In a bold statement, Lummis emphasized that it is Congress’ responsibility to establish clear guidelines on securities and commodities, rather than leaving it to the SEC to wield unchecked power in redefining investment contracts.

The senator raised concerns about the SEC’s broadening regulatory scope over digital assets, suggesting that outdated securities laws are being misapplied to encompass a wide array of digital assets, which could impede innovation in the sector.

Lummis' brief underscores the importance of maintaining the separation of powers and highlights the need for a defined regulatory framework by Congress, rather than unilateral actions by the SEC.

The ongoing legal battle between Coinbase and the SEC underscores the significance of clarifying the SEC’s authority over digital assets to prevent hindering progress and causing legal ambiguity. The pending decision by the Second Circuit Court is awaited for crucial insights into the extent of the SEC’s powers.

Coinbase recently secured a partial victory in its legal tussle with the SEC, with the US Court of Appeals questioning the SEC’s rationale for denying Coinbase’s petition.

Stay ahead with the top crypto platforms for January 2025: Phemex, Bybit, Margex, BingX, and Coinex.

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