- Senator Cynthia Lummis has criticized the SEC’s regulatory actions on crypto as overly aggressive and excessive. She aims to block the SEC’s controversial new policy called Staff Accounting Bulletin 121.
- Lummis believes SAB 121 overreaches the SEC’s authority and could hurt crypto users if custodians collapse. She expects Senate and House support in blocking this policy.
- More broadly, Lummis wants to bring regulatory clarity to crypto through legislation with Sen. Gillibrand. She supports the House Financial Services Committee’s crypto framework and is flexible on which chamber passes legislation first.
The United States Securities and Exchange Commission (SEC) has taken an aggressive approach in regulating the cryptocurrency industry. The SEC has pursued allegations against major crypto companies like Ripple, Binance, and Coinbase. This crackdown has faced pushback from crypto supporters, including Senator Cynthia Lummis.
Senator Lummis Criticizes the SEC’s “Overreaching”
Senator Cynthia Lummis (R-Wyo) has criticized the SEC’s regulatory actions on crypto as unnecessary and excessive. Lummis, a vocal advocate of cryptocurrencies, has vowed to block controversial new SEC policies impacting crypto.
Specifically, Lummis aims to block a March 2022 SEC policy called Staff Accounting Bulletin 121. This policy requires financial firms holding customer crypto to prepare balance sheets and warns of risks in safeguarding digital assets. The Government Accountability Office says Congress hasn’t approved SAB 121.
Lummis believes the policy overreaches the SEC’s authority and could hurt crypto users if custodians collapse. She expects Senate and House support in blocking this policy.
Senator Lummis’ Agenda on Crypto Regulation
More broadly, Lummis wants to bring regulatory clarity to crypto in Washington. She is collaborating with Sen. Kirsten Gillibrand (D-NY) on a crypto regulation bill.
Lummis believes her agenda can pass in 2024. She plans to insert crypto policies into legislative packages. A section of her bill on terrorist financing recently passed the Senate’s defense spending bill, though it’s now stalled in the House.
Lummis supports the crypto framework from the House Financial Services Committee. She’s flexible on which chamber passes legislation first. Overall, Lummis aims to provide clear guardrails for the crypto industry through thoughtful policy.