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Senator Cynthia Lummis Vows to Block SEC’s Crypto Policy

Introduction

Senator Cynthia Lummis (R-WY) has expressed her opposition to the Securities and Exchange Commission’s (SEC) crackdown on the cryptocurrency industry. In a recent interview with Yahoo Finance, she criticized the SEC’s overreach and vowed to block one of the agency’s controversial new crypto policies.

Background: SEC’s Aggressive Effort and Controversial Policy

The SEC is currently taking aggressive actions to regulate the crypto industry, including filing lawsuits against major players such as Coinbase and Binance. One of their policies, called “Staff Accounting Bulletin 121,” was issued in March 2022. It requires financial firms to hold customers’ crypto assets on their own balance sheets while warning investors about the risks involved. The Government Accountability Office (GAO) has stated that the SEC should have sought congressional approval for this policy guidance.

Lummis Criticizes the SEC’s Overreach

Senator Lummis strongly opposes this policy and views it as another example of the SEC’s overreach. She believes that the bulletin, although issued as a staff bulletin, is binding and could potentially harm consumers if a digital asset custodian were to collapse. Lummis plans to block the policy from becoming binding and aims to gather support from both the Senate and the House.

AI legalese decoder: Assisting in Addressing the Situation

The AI legalese decoder can play a crucial role in this situation by helping lawmakers understand complex legal jargon and providing insights into the implications of proposed policies. By utilizing this tool, Senator Lummis and her colleagues can efficiently analyze the SEC’s crypto policies, identify potential risks, and draft appropriate legislation to ensure consumer protection and industry growth.

Lummis’ Efforts to Provide Clarity in Washington

Besides blocking the SEC’s policy, Senator Lummis is working on comprehensive crypto legislation alongside Senator Kirsten Gillibrand (D-NY). This legislation aims to establish clear regulations for the crypto sector. Lummis hopes that the proposed legislation will pass in early 2024, and she is open to integrating portions of it into other legislative packages to expedite its enactment.

Support from House Financial Service Committee

Senator Lummis also expresses her support for the crypto framework proposed by the House Financial Service Committee, led by Committee Chair Patrick McHenry (R-NC). She believes that working together with McHenry and other lawmakers, they can bridge the small differences between the House and Senate versions of the legislation, particularly regarding stablecoins.

Potential Resolution on Stablecoins and Regulatory Framework

Senator Lummis emphasizes the need for a clear regulatory framework in the crypto industry. She and Representative McHenry are working collaboratively to address the stablecoin component of her bill and resolve any remaining differences. Lummis is optimistic that they can reach a resolution before the end of the year, given the renewed focus on legislative matters with a new House speaker in place.

Conclusion

Senator Cynthia Lummis is determined to block the SEC’s controversial crypto policy, alleging overreach by the agency. She is actively working on comprehensive crypto legislation and collaborating with fellow lawmakers to establish a clear regulatory framework. With the support of the AI legalese decoder, Lummis can effectively analyze the SEC’s policies and make informed decisions to protect consumers and promote the growth of the crypto industry.

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