Two US senators have criticized the Securities and Exchange Commission’s (SEC) lawsuit against the largest US cryptocurrency exchange, Coinbase.
On June 6, the SEC filed a lawsuit alleging that Coinbase violated securities laws by operating as an unregistered broker, exchange, clearing agency, and offering unregistered securities through its staking program. The regulator also alleged that the exchange offered unregistered security tokens such as ADA, SOL, etc. to US investors through its platform.
Senator Lummis says the SEC’s approach hurts consumers.
in june 6 statementSenator Cynthia Lummis said that the SEC’s regulation from an enforcement perspective harmed consumers.
Lummis pointed out that the financial regulator has failed to provide a conducive regulatory environment that would allow digital asset exchanges to register and has failed to provide “adequate legal guidance to distinguish a security from a commodity.”
“Real consumer protection requires creating a strong legal framework that exchanges can adhere to without pushing the industry offshore or into the shadows. This is why Congress needs to pass the Lummis-Gillibrand Responsible Financial Innovation Act.” Needed.”
Under Chairman Gary Gensler, the SEC has continually urged crypto firms to register with the authorities. However, several crypto stakeholders said that the commission failed to provide a framework for trading these registered tokens.
Senator Loomis is an outspoken advocate for the crypto industry and co-authored a bill that provides regulatory clarity for the emerging space with Senator Kirsten Gillibrand.
Senator Hegerty issued a warning.
Senator Bill Haggerty Said The SEC was weaponizing its role to kill an industry. According to the legislator, the financial regulator’s refusal to allow Coinbase to register was inexcusable, given that the commission had approved its public listing.
“It is inexcusable to allow a company to list publicly and then hinder their efforts to register.”
Haggerty said the Gensler-led organization would “hear from Congress.”
Meanwhile, this is not the first time Senator Haggerty has criticized financial regulators. On March 9, the MLA sent a Letter questioned several financial agencies as to why they were “pressuring financial institutions to cut services to licensed, legally operating cryptocurrency and digital asset companies.”