Senator Lummis Stands Up For Coinbase In A BIG Way In Its Battle Against SEC

By Anthony • August 13, 2023 5:58 am • Comments

Senator Cynthia Lummis has thrown her support behind Coinbase as the crypto exchange looks to dismiss the SEC’s recent complaint.

Sen. Lummis is no stranger to crypto and is one of the few Senators who has played an active role in establishing crypto policies in the US.

The Senator from Wyoming in an amicus brief noted “Congress, not the SEC, should be in charge of deciding what regulations apply to cryptocurrency.”

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In her amicus brief she went on record writing “Although the SEC seeks broad authority over crypto asset markets, most legislative proposals in Congress would instead grant much of that authority to other agencies. Unsatisfied, the SEC seeks to circumvent the political process to commandeer that authority for itself.”

 

Per Coingape:

In a surprising turn of events, Senator Cynthia Lummis has thrown her support on cryptocurrency exchange Coinbase’s bid to dismiss the U.S. Securities and Exchange Commission’s (SEC) complaint. The move highlights Lummis’ active role in crypto asset policy and her push for congressional oversight in this emerging sector.

A key proponent of the bicameral Lummis-Gillibrand Responsible Financial Innovation Act, Senator Lummis, has submitted an amicus brief in favor of Coinbase. She claims in her statement that the SEC is not explicitly authorized to oversee digital assets. The senator is adamant that Congress, not the SEC, should be in charge of deciding what regulations apply to cryptocurrency.

Lummis contends that the SEC’s sweeping claim that almost all crypto assets qualify as securities goes beyond the agency’s authority and violates the constitutionally mandated separation of powers. Lummis criticizes this approach, frequently referred to as “regulation-by-enforcement,” and stresses that the SEC must not circumvent the legislative process.

Senator Lummis, who is an amicus curiae, sits on the Senate Committee on Banking, Housing, and Urban Affairs, which has authority over both the SEC and crypto assets.

Notably, Senator Lummis is aligned with other powerful figures in the crypto advocacy scene. Prominent organizations have banded together to express their disapproval of the SEC’s regulatory approach, including the Blockchain Association, the Crypto Council for Innovation, the Chamber of Progress, and the Consumer Tech Association.

Per Cointelegraph:

The crypto-friendly United States Senator Cynthia Lummis has filed an amicus brief supporting Coinbase’s motion to dismiss the U.S. Securities and Exchange Commission’s (SEC) lawsuit against the firm.

An amicus brief is a document filed in court by a party not directly involved with the related case. It is generally used to add supporting arguments to one side of the lawsuit and emphasize how the case will have a broader impact beyond the involved parties.

As per the Aug. 11 filing in the U.S. District Court for the Southern District of New York, Lummis stressed that “this is no run-of-the-mill enforcement case.”

The senator asserted that with its lawsuit against Coinbase over alleged securities violations, the SEC is pushing to obtain “primary influence” over the crypto sector at a time when regulation and other factors are still “under active consideration by Congress and multiple agencies.”

“The SEC brings this enforcement action in the midst of debates in the halls of Congress and around the world about how crypto assets should be regulated. The Constitution empowers Congress—not the SEC—to legislate in such an area of profound economic and political significance.”
“Although the SEC seeks broad authority over crypto asset markets, most legislative proposals in Congress would instead grant much of that authority to other agencies. Unsatisfied, the SEC seeks to circumvent the political process to commandeer that authority for itself,” she added.

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