ProBitcoin US Senator Cynthia Lummis filed an amicus brief as a part of the Coinbase vs SEC conflict over the SEC agency’s bad crypto regulatory approach.
Cynthia Lummis is a pro-Bitcoin US Senator from Wyoming. Over the last several years, she has been engaged in the crypto regulatory efforts to make America a centre of digital innovation hub.
On 29 Jan 2024, Cynthia Lummis filed an amicus brief in the Coinbase vs SEC dispute. Through the amicus brief, Lummis said that the crypto regulatory efforts by the United States Securities and Exchange Commission (SEC) during the presidency of Joe Biden were not good because the regulatory body was trying to regulate this new market with traditional financial rules, e.g. forcible implications of Howey test & investment contracts on the digital assets.
Lummis said that Congress must step in this matter to draw a line to classify the cryptocurrencies in the classes to confirm which asset is security & which one is a commodity.
ProBitcoin Senator also shared a copy of the amicus brief on X (formerly Twitter) & said that the crypto community is bringing innovation back to the US.
This amicus brief was submitted with the Second Circuit, the country’s leading securities law court. On behalf of such information, the court judge will decide whether the Coinbase vs SEC case should be passed to the Southern District of New York or dismissed.
Many experts stated that Lummis’s statement on this matter is now very important because if factual information is provided, then there are chances that they will dismiss the case before wasting any time.
It is worth noting that currently, the crypto sector is running under traditional financial rules & laws, and a special Cryptocurrency group under the leadership of the new US president, Donald Trump, is working to create a new set of rules to implement a crystal clear regulatory framework. In the last couple of years, the US SEC body filed lawsuits against multiple crypto exchanges over providing Crypto trading services, as the trading of cryptocurrencies subject to the violation of the Securities Act.
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