Senator Lummis Challenges SEC's Crypto Regulation, Coinbase Expands Globally
1min read Senator Cynthia Lummis has stepped into the ongoing legal battle between Coinbase and the U.S. Securities and Exchange Commission (SEC), filing an amicus brief that accuses the agency of regulatory overreach and unclear rules. Lummis, a strong advocate for the crypto industry, argues that the SEC has misapplied securities laws and urges Congress to take the lead in regulating digital assets.
In her filing with the U.S. Court of Appeals for the Second Circuit, Lummis criticized the SEC's regulatory approach under former Chair Gary Gensler, stating that it lacks transparency and undermines the separation of powers. She believes that the agency has been unfairly reinterpreting existing securities laws without clear guidelines and imposing those rules on crypto firms without prior notice.
Lummis's intervention comes at a crucial time, as the SEC is experiencing a leadership change. Mark Uyeda has taken over as Acting Chair, and there is speculation that the agency might adopt a more balanced approach to crypto regulation. Uyeda has already introduced a dedicated crypto task force to develop a clearer regulatory framework, signaling a potential shift in the SEC's stance.
Coinbase, the target of the SEC's lawsuit, has been fighting back against the agency's enforcement actions. The company argues that the SEC's rules were never designed for digital assets and that its enforcement actions are inconsistent. Despite its legal battle in the U.S., Coinbase continues to expand globally, recently securing a Virtual Asset Service Provider (VASP) license in Argentina. Under the leadership of Matías Alberti, Coinbase aims to build a stronger foothold in the Latin American crypto market.
