In the face of growing global regulatory pressure on the crypto industry, the Biden administration’s intensified crackdown and the actions of regulatory bodies have prompted Senator Cynthia Lummis to issue a strong statement against the US government’s stance on the industry.
Senator Lummis, a prominent supporter of Bitcoin and the overall crypto market, has advocated for the companies and players involved in the ongoing regulatory pressure.
Lummis Condemns DOJ’s “Hyper-Aggressive” Stance
Lummis expressed deep concern and opposed the Department of Justice’s (DOJ) “hyper-aggressive” argument that non-custodial software could be classified as a money transmission service.
The Senator deemed this stance contradictory to existing Treasury guidance, lacking common sense, and violating the rule of law.
Lummis further emphasized that arguments against self-custody software pose a threat to fundamental property rights that are intrinsic to being an American.
Lummis asserted her commitment to fighting for individuals’ rights to hold their keys and operate their nodes, expressing her dismay at the Biden administration’s criminalization of the core tenets of the Bitcoin (BTC) network and decentralized finance (DeFi).
Senator Lummis had previously disapproved of the Securities and Exchange Commission’s (SEC) escalated crackdown on the crypto industry throughout 2023.
Criticizing the SEC’s actions as “unnecessary” and “overreaching,” she specifically opposed the agency’s controversial new crypto policy, known as “Staff Accounting Bulletin 121,” issued in March 2022.
Lummis had 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.
The pro-crypto Senator contended that the SEC had exceeded its mandate by attempting to classify almost all crypto assets as “securities,” thus infringing on Congress’s legislative authority and extending beyond the agency’s jurisdiction.
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.
To address these issues, Senator Lummis, in collaboration with Senator Kirsten Gillibrand, has introduced the Lummis-Gillibrand bill. The legislation aims to provide regulatory clarity for digital assets like XRP, aligning their treatment with the interpretation of the Howey Test as established by the Southern District of New York.
The largest cryptocurrency on the market, Bitcoin, is trading at $57,800 after hitting a low of $56,400 in the early hours of Wednesday.
Featured image from Yahoo, chart from TradingView.com