Senator Lummis Criticizes Biden’s Crypto Crackdown, Calls For Legal Clarity

Senator Cynthia Lummis stands as a vocal supporter of the crypto community. She has a bold attitude criticized The Biden administration and regulators are increasing scrutiny of the cryptocurrency market. As the debate over digital assets intensifies, Lumis has emerged as a key ally of the crypto industry, championing its interests within the regulatory environment.

Senator Lummis adamantly disagrees with the Department of Justice’s recent opinion that non-custodial cryptographic software can be considered a money transfer service. She argues that this interpretation contradicts Treasury guidelines, lacks logic and puts fundamental property rights at risk. Lummis, a vocal supporter of Bitcoin and cryptocurrencies, remains adamant about the Justice Department’s stance.

Lummis criticized the Justice Department’s “highly aggressive” approach, saying it violates the rule of law. She also expressed her concerns about the Biden administration’s efforts to criminalize key aspects of the Bitcoin (BTC) network and decentralized finance (DeFi). The move comes amid increased regulatory scrutiny in 2023, in part due to an increased crackdown on the cryptocurrency industry by the Securities and Exchange Commission (SEC).

Conflict over cryptocurrency regulation

Senator Lummis publicly criticized the SEC’s actions, particularly the new policy issued in March 2022, Employee Accounting Bulletin No. 121. She believes the SEC overstepped its authority by classifying most digital assets as “securities,” which should be Congress’s role. Lummis emphasized that Congress, not the SEC, should regulate cryptocurrencies. The senator argues that the policy violates Congress’ legislative powers.

Further disputing opposing positions, Lummis filed supportive legal documents in support of Coinbase’s legal dispute with the SEC, calling for transparent and consistent regulation to guide the growth of the cryptocurrency industry. He insisted. Her position emphasizes that regulatory clarity is critical to fostering innovation while protecting individual property rights.

In response to the ongoing dispute, Sens. Lummis and Gillibrand have introduced legislation aimed at providing clearer guidelines for digital assets. This bill adopts the Howey Test interpretation defined by the Southern District of New York and promotes a more enlightened approach to digital asset regulation.

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