Senator Cynthia Lummis argues that the SEC, by regulating the industry through enforcement action through the courts, is making a big mistake because it does nothing to foster a regulatory environment conducive to the exchange of digital assets.
The parliamentarian stressed the importance of creating robust rules that allow crypto exchanges to operate within the law without going offshore or into the shadow market. To address the problem, Lummis called for her Responsible Financial Innovation Act, drafted with Senator Kirsten Gillibrand. The bill aims to clarify the regulation of the emerging cryptospace. Lummis thinks it will avoid situations like the collapse of FTX.
Senator Bill Hagerty agrees with Lummis’ concerns that the SEC is abusing its power to destroy the industry.. Regulator unjustifiably denied Coinbase registration, while the stock exchange is publicly traded. The senator warned that because of his pressure on cryptocurrencies, the SEC would come under scrutiny from Congress.
This is not the first time Bill Hagerty has expressed displeasure with the financial regulator’s actions. Last year, a politician introduced a bill clarifying the methods of classifying digital assets. He believes it will protect the crypto industry from the SEC.