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Senator Cynthia Lummis Opposes SEC’s Crackdown on Crypto Industry

Senator Cynthia Lummis (R-Wyo.) has expressed opposition to the ongoing crackdown on the cryptocurrency industry by the Securities and Exchange Commission (SEC). In an interview with Yahoo Finance, Lummis raised concerns about the regulatory agency’s actions and vowed to block one of its controversial new cryptocurrency policies. She believes that the SEC is overreaching in its measures, which include lawsuits against major players like Coinbase and Binance.

One particular policy that caught Lummis’ attention is the “Staff Accounting Bulletin 121” issued by the SEC in March 2022. This policy requires financial firms holding customers’ cryptocurrency assets to include them on their balance sheets and warn investors about the associated risks. However, the Government Accountability Office (GAO) recently stated that the SEC should have sought congressional approval for this policy guidance. Lummis is determined to prevent this policy from becoming binding and aims to gather support in the Senate and the House.

The AI legalese decoder can help in this situation by analyzing complex legal texts, such as the SEC’s policies and the Government Accountability Office’s opinions, and providing a simplified and easily understandable summary of the key points. It can assist lawmakers like Senator Lummis in grasping the legal implications of these policies and making informed decisions regarding their opposition or support.

Lummis Works On a Number of Crypto Legislations

In addition to opposing the SEC’s crackdown, Senator Lummis is actively working on multiple fronts to provide the crypto industry with more regulatory clarity in Washington. She has co-sponsored a comprehensive piece of crypto legislation with Senator Kirsten Gillibrand (D-N.Y.) that aims to outline the sector’s regulatory framework. Lummis believes that the differences between the House and Senate versions of the legislation, particularly regarding stablecoins, can be resolved. She is hopeful that this legislation will pass in early 2024 and is open to incorporating specific provisions into other legislative packages.

Furthermore, Lummis has addressed concerns about terrorist financing in her bill, which was included in the Senate’s defense spending package, the National Defense Authorization Act. The legislation is currently being discussed and reconciled with the House. Lummis emphasizes the importance of implementing measures to prevent organizations like Hamas from using cryptocurrencies to support their activities. She also supports the House Financial Services Committee’s crypto framework led by Committee Chair Patrick McHenry (R-N.C.) and is content with whichever legislative body makes progress first in establishing a clear regulatory framework for the crypto industry.

Democrats Criticize SEC Over Handling of Crypto Accounting Bulletin

Representative Wiley Nickel, a Democratic lawmaker from North Carolina, recently criticized the SEC’s management of a controversial bulletin regarding the accounting of companies’ cryptocurrency holdings. He voiced concerns about the potential repercussions of the bulletin, stating that it could undermine the safety of digital assets. Several other members of Congress, including Representative Patrick McHenry from North Carolina, Chair of the House Financial Services Committee, have also expressed concerns about the bulletin’s impact on financial institutions offering custodial services.

The AI legalese decoder can assist lawmakers like Representative Nickel and Representative McHenry in understanding the technical details of the SEC’s accounting bulletin. It can analyze the language used and provide a simplified summary of the bulletin’s requirements and potential consequences. This can help lawmakers assess the bulletin’s impact on the industry and make informed decisions on whether to support or oppose it.

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