- The crypto industry faces increasing global regulatory pressure, with the Biden administration intensifying its crackdown on the sector.
- Senator Cynthia Lummis, a prominent supporter of Bitcoin and the crypto market, has issued a strong statement against the US government’s stance on the industry.
- Lummis condemns the Department of Justice’s (DOJ) “hyper-aggressive” argument that non-custodial software could be classified as a money transmission service.
Senator Cynthia Lummis criticizes the Biden administration’s intensified crackdown on the crypto industry, condemning the DOJ’s stance on non-custodial software. Lummis also calls for clear regulatory guidelines for the crypto market.
Lummis Condemns DOJ’s “Hyper-Aggressive” Stance
Senator Lummis has expressed deep concern and opposed the Department of Justice’s (DOJ) argument that non-custodial software could be classified as a money transmission service. She deems this stance contradictory to existing Treasury guidance, lacking common sense, and violating the rule of law. Lummis further emphasizes that arguments against self-custody software pose a threat to fundamental property rights that are intrinsic to being an American.
Lummis’s Opposition to the SEC’s Crackdown
Senator Lummis has previously disapproved of the Securities and Exchange Commission’s (SEC) escalated crackdown on the crypto industry throughout 2023. She criticized the SEC’s actions as “unnecessary” and “overreaching,” specifically opposing the agency’s controversial new crypto policy, known as “Staff Accounting Bulletin 121,” issued in March 2022. Lummis also filed an amicus brief in support of the Coinbase exchange against the SEC’s lawsuit, arguing that Congress should be responsible for formulating crypto regulations rather than the SEC.
Clear Guidelines For Crypto Regulation
In another statement supporting key players in the crypto market, Senator Lummis called for immediate action to establish clear regulatory guidelines in response to Judge Analisa Torres’ ruling that XRP should not be considered a security. At the core of the debate is the Howey Test, a legal standard used to determine whether an investment qualifies as a security. Lummis has emphasized the importance of preserving the integrity of this test while acknowledging the need to apply it appropriately to digital assets.
Conclusion
Senator Cynthia Lummis continues to advocate for the crypto industry, opposing the Biden administration’s intensified crackdown and calling for clear regulatory guidelines. As the crypto market continues to evolve, the need for clear and fair regulation becomes increasingly important. Whether the Lummis-Gillibrand bill will provide the necessary clarity remains to be seen.
