US Senator Cynthia Lummis Blasts SEC Actions Against Coinbase, Explains Crypto Industry Is Being Pushed Offshore

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Wyoming U.S. Senator Cynthia Lummis has heavily criticized the recent legal action of the Securities and Exchange Commission (SEC) against Coinbase, stating that it might push the cryptocurrency industry and its innovation offshore. Lummis also remarked that the SEC has failed to streamline a path for cryptocurrency companies like Coinbase to regularize their operations.

U.S. Senator Cynthia Lummis Criticizes Lack of Diligence on Crypto Regulation

Politicians and senators have begun to issue their opinions about the latest actions that the U.S. Securities and Exchange Commission (SEC) is taking against cryptocurrency companies in the country. Senator Cynthia Lummis has recently stated her disagreement with the stance that the institution has taken against Coinbase, which was accused of providing illegal brokerage services and offering unregistered securities to its customers.

In a statement on this specific legal action, Lummis blasts the SEC, stating that it has failed to service the cryptocurrency industry in several ways. Lummis stated:

The SEC has failed to provide a path for digital asset exchanges to register, and even worse has failed to provide adequate legal guidance on what differentiates a security from a commodity.

In April, Gary Gensler, Chairman of the SEC, repeatedly refused to answer questions regarding whether Ethereum qualified to be a commodity or security in a House Financial Services Committee hearing.

SEC Regulation by Enforcement Pushes the Industry Away

Lummis also referred to the unwanted consequences that the lack of clarity on the SEC’s actions might bring to the future of the crypto industry in the U.S., explaining that its continued reliance on regulation by enforcement was harming customers.

Lummis elaborated, declaring:

Real consumer protection requires creating a robust legal framework that exchanges can comply with, not pushing the industry offshore or into the shadows.

On June 7, 2022, Senator Lummis and Senator Gillibrand introduced the Responsible Financial Innovation Act, which aims to provide a framework that “encourages responsible financial innovation, flexibility, transparency, and robust consumer protections while integrating digital assets into existing law,” according to a press release promoting the bill.

Lummis mentioned passing the Responsible Financial Innovation Act could avoid the current regulatory clarity problem that might take the crypto industry to other countries.

Brian Armstrong, CEO of Coinbase, had previously discussed that the restrictive policies of the U.S. government against the cryptocurrency industry could benefit countries like China, inviting the U.S. Congress to “pass comprehensive legislation that safeguards consumers and fosters innovation.”

What do you think about the legal actions that the SEC is pursuing against Coinbase? Tell us in the comments section below.