Wyoming’s Senator Cynthia Lummis has expressed strong disapproval of the recent legal action taken by the Securities and Exchange Commission (SEC) against Coinbase.

Public officials and senators have started sharing their viewpoints on the recent actions taken by the SEC towards digital asset companies operating in the United States.

Read more on the subject : Bitcoin Plunges Below $26,000 As SEC Sues Binance

Among those, is Senator Cynthia Lummis who recently expressed her disagreement with the SEC‘s approach towards Coinbase. The company faced allegations of offering unauthorized brokerage services and providing unregistered securities to its customers.

Lummis argues that this move could potentially drive the bitcoin industry and its innovative ventures to relocate overseas. Additionally, she highlights the SEC’s failure to establish a clear framework for digital asset companies like Coinbase to legalize and regulate their operations.

In her response to this particular legal action, Lummis strongly criticizes the SEC, highlighting multiple areas in which she believes the commission has neglected to support the digital assets industry.

Lummis says she believes that the SEC’s inability to establish a clear registration process for digital asset exchanges and their lack of comprehensive legal guidance to differentiate between securities and commodities is deeply concerning.

She adds that by relying on enforcement-based regulation, the SEC is ultimately causing harm to consumers. To truly protect consumers, a strong legal framework must be developed that allows exchanges to operate in compliance, rather than driving the industry overseas or underground.

Its worth noting that although Gary Gensler, the chair of SEC, has repeatedly expressed that he believes bitcoin is a commodity and not a security, during a hearing held by the House Financial Services Committee in April, he declined to provide any clear answer when questioned about whether Ethereum should be classified as a commodity or security.

Read more on the subject : According To SEC, Bitcoin Commodity, Cryptos Securities?

Senator Lummis also states that this is precisely why it is imperative for Congress to pass the Lummis-Gillibrand Responsible Financial Innovation Act.

The Responsible Financial Innovation Act, introduced by Senators Lummis and Gillibrand in June 2022, looks to create a comprehensive regulatory framework for digital assets that promotes responsible financial innovation, transparency, flexibility, and robust consumer protections while integrating digital assets into existing laws.