United States Senatorsaid recent SEC action against cryptocurrency exchange despite its attempts to comply with regulators, “it’s not the right way to do business in America.”
The Wyoming senator made the statement during an interview with Yahoo Finance on June 22. She said:
“I’m scratching my head as to why they would do that with Coinbase.”
Lummis said that Coinbase had publicly shown that it was willing to cooperate with regulators and repeatedly asked the SEC for guidance on how to properly comply with the rules. However, the SEC did not give the company an “adequate” answer and instead chose to take enforcement action.
“That’s not a good way to regulate; That’s not a good way to do business.”
On the other hand, the senator said that she could somehow “understand” why the regulator was pursuingsince it is a “big” company that is not “national”.
Merchandise or security?
Lummis also spoke about bringing clarity to the regulatory landscape in the US and confirmed that an updated version of hiswould be revealed to the public soon.
He said lawmakers are working to establish a proper framework for determining whether a cryptocurrency is a commodity or a security, which should help lay a foundation for future regulation.
This framework will preserve the Howey test, according to the senator.
Lummis said the updated bill addresses several concerns that have arisen after its initial submission, including issues around the illicit use of digital assets by ensuring there are enough “personnel and authorities” to combat it.
He said the bill strengthens components related to consumer protection and also establishes a “self-regulatory organization” that will manage the arrival of new technologies in the future and “guide them through the regulatory process.”
The chargefirst appeared in .