Key Points
- Senator Lummis criticizes the US government’s approach to cryptocurrency regulation.
- She advocates for clearer regulatory guidelines for the crypto industry.
Senator Lummis has recently expressed her dissatisfaction with the US government’s approach to cryptocurrency regulation through her official X account. She made a firm statement criticising the ‘hyper-aggressive’ regulatory stance.
Her statement included a critique of the Department of Justice’s argument that non-custodial software can be considered a money transmission service. This is a viewpoint that she finds deeply troubling.
Senator Lummis’s Advocacy for Crypto
It’s not uncommon for Senator Lummis to voice her support for Bitcoin and the broader cryptocurrency market. This time, however, she contends that the Department of Justice’s position not only contradicts existing Treasury guidance but also lacks common sense and violates the rule of law.
She further explained that the arguments against self-custody software pose a threat to the fundamental property rights of average Americans. Lummis argues that individuals have the right to hold their keys and operate their own nodes. She believes that by criminalizing this, the Biden administration is undermining the very concept of the Bitcoin (BTC) network and the principles of decentralized finance (DeFi).
Senator Lummis’s Call for Regulatory Clarity
Senator Lummis has publicly expressed her disapproval of the Securities and Exchange Commission’s (SEC) “unnecessary” and “overreaching” actions over the past year. Her criticism began in March 2022 when the SEC introduced a controversial crypto policy known as “Staff Accounting Bulletin 121”.
She also notably submitted an amicus brief supporting the Coinbase exchange in its legal dispute with the SEC. She argued that Congress, not the SEC, should be responsible for formulating cryptocurrency regulations. She believes that the SEC has overstepped its bounds by attempting to classify almost all crypto assets as “securities,” an action she views as a direct violation of Congress’s legislative authority.
Ultimately, Senator Lummis’s goal is to establish clear regulatory guidelines for the cryptocurrency industry. To this end, she recently collaborated with Senator Kirsten Gillibrand to introduce the Lummis-Gillibrand bill. This legislation aims to provide regulatory clarity for digital assets, properly classifying them.
Senator Lummis is a well-known supporter of Bitcoin and the broader cryptocurrency market. Her latest statement is a reflection of the increasing regulatory pressure faced by the industry globally.
