Sen. Cynthia Lummis lambasts SEC over enforcement actions against Coinbase

Senator Cynthia Lummis has expressed her opinion on the recent enforcement actions by the Securities and Exchange Commission (SEC) against Coinbase. According to her, the exchange’s compliance efforts with regulations should have been acknowledged by the regulator. She further stated that the SEC’s actions go against America’s business ethics.

Sen. Lummis calls for amenable regulations 

During a recent interview with Yahoo Finance, Wyoming Senator Cynthia Lummis expressed her confusion regarding the SEC’s actions against Coinbase. She stated, “I’m scratching my head about why they would do that with Coinbase.”

Senator Cynthia Lummis commented on the SEC’s recent actions against Coinbase, stating that the exchange had tried cooperating with regulators. 

However, despite repeated requests for guidance on compliance by the exchange and other industry players, the SEC failed to provide adequate responses and instead took the enforcement action route.

Lummis believes this approach to regulation needs to be more practical and conducive to good business practices, as it would only stifle the growth of innovative technologies like bitcoin (BTC) in the country.

You might also like: CoinGecko says SEC lawsuits against Binance and Coinbase sent prices tumbling

Similarly, the senator acknowledged that she could understand why the SEC was targeting Binance, as it is a large international company not based domestically, unlike Brian Armstrong’s Coinbase. 

SEC’s unending enforcement actions 

It will be recalled that the U.S.SEC filed a lawsuit against Binance and its founder, Changpeng Zhao, on Jun. 5, accusing them of operating unregistered exchanges, broker-dealers, and clearing agencies, misrepresenting trading controls and oversight on the Binance.US platform, and the unregistered offer and sale of securities.

The SEC also accused Binance of allowing  U.S. customers to trade crypto on an exchange that is supposed to be off-limits to U.S. investors. The lawsuit also alleged that Binance and Zhao engaged in an extensive web of deception, conflicts of interest, lack of disclosure, and calculated evasion of the law.

The SEC’s lawsuit against Binance and Zhao has left Binance “in the fight for their lives,” according to some experts. The SEC also asked a federal court to freeze assets held by Binance.US, according to an emergency motion filed by the agency on June 6, 2023.

Protecting investors and fostering innovation

Senator Cynthia Lummis has discussed the need for regulatory clarity in the United States. She has confirmed that an updated version of her 2022 crypto regulation bill will be made public soon. 

The senator shared that lawmakers are creating a framework to determine whether a cryptocurrency is a commodity or a security, which will serve as a foundation for future regulation and preserve the Howey test.

Lummis has stated that the updated bill addresses concerns raised after its initial submission, including issues related to the illicit use of digital assets. The bill will bolster consumer protection measures and establish a self-regulatory organization to guide new technologies through the regulatory process.

Read more: SEC vs. Coinbase and new lawsuit history of the years long battle
Follow Us on Google News

Comments

Post a Comment

Popular posts from this blog

XRP Futures Open Interest Surpass $1.1 Billion in 24 Hours

Image
XRP made notable strides in the crypto market, leading to substantial gains. Within the last 24 hours, open interest on futures contracts linked to XRP exceeded $1.1 billion. This achievement marked another milestone, surpassing the $1 billion mark set the previous week and establishing a new record high for the year. Open interest is the number of unsettled futures contracts. This has experienced a 21% increase since earlier this week. Among these positions, the largest share of about $459 million is held on the crypto exchange Binance. Bybit was next in line at $304 million and Bitget followed suit with $263 million. Source A higher open interest indicates a surge in investments or bets on various assets. This signifies the influx of new funds into the financial market. Typically, this suggested an expectation for the current trend to persist. In parallel, the price of XRP experienced an astonishing surge of 67.42% in the past few days. At press time, the altcoin was trad...
Read more

Analyst Predicts Trends Using Whales’ Onchain Borrowing Data

Traders can tell when whales go long by monitoring the Aave/Compound stablecoin borrowing pattern, according to The Data Nerd, an onchain data analyst. According to the analyst, four whales have used this strategy in the last 24 hours. Quick tip: Monitoring Aave/Compound stablecoin borrow can tell you when whales go long. We have created a @DuneAnalytics dashboard for you to easily follow this behavior. So far we have noticed 4 whales using this strategy since yesterday pic.twitter.com/RTwZ8LyWCL — The Data Nerd (@OnchainDataNerd) April 23, 2023 In a Twitter thread, The Data Nerd explained that similar to using margin or leverage on centralized exchanges (CEX), whales would go long by borrowing stablecoin using Aave or CompoundFinance. They would follow this up by using the amount to buy assets on decentralized exchanges (DEX) or to deposit to CEX. They repeat the cycle and use it as a profitable system in the cryptocurrency market. By monitoring the action of w...
Read more

US prosecutors outline jury instructions for SBF’s trial

US prosecutors have submitted their proposed instructions to the jury for the upcoming trial of FTX co-founder Sam Bankman-Fried, set to begin in October. The detailed 100-page filing, dated Aug. 21, outlines how the prosecutors wish Judge Lewis Kaplan to guide the jury in Bankman-Fried’s case. The instructions are based on previous guidance the New York district judge has provided in other cases. Bankman-Fried faces seven charges, including fraud, money laundering conspiracy, wire fraud, commodities fraud, and securities fraud. The filing breaks down each charge, suggesting how Judge Kaplan should present the allegations, the burden of proof required for a guilty verdict, and the evidence related to each charge. The document also includes proposed guidelines for how the jury should assess the evidence, deliberate, and conclude each count. While such proposals are standard in criminal trial s, the final decision on jury instructions rests with Judge Kaplan. The former FTX c...
Read more