Wyoming Senator Cynthia Lummis has criticized the United States Securities and Exchange Commission (SEC) and its Chairman, Gary Gensler, calling for improved crypto regulation in the country.
Many members of the crypto community have also expressed their frustration, accusing Congress of unfairly placing blame solely on the SEC.
Senator Lummis predicts Gary Gensler’s departure as SEC chairman
Speaking on CNBC’s Squawk Box, Lummis suggested that Gensler could step down as SEC chairman next year, although she acknowledged that he “loves the job” and might not want to not leave. She noted, however, that this scenario could change if Vice President Kamala Harris wins the November election.
Lummis expressed his disapproval of Gensler, primarily due to his failure to recognize Bitcoin (BTC) and Ethereum (ETH) as commodities. She also hinted that other cryptocurrencies could be considered commodities and called for clearer regulatory guidelines.
“We need to have a clear definition. The Howey test is available to us, and as it has been updated, perhaps there are other assets, just beyond Bitcoin and Ethereum, that could fall under the purview of the Commodity Futures Trading Commission », added the senator.
Read more: Who is Gary Gensler? Everything you need to know about the SEC Chairman
Lummis highlighted the need for clearer crypto regulation in the United States, saying it would provide clarity for businesses. She highlighted the EU’s “very effective” approach to crypto regulation, urging the US not to let other countries get ahead of themselves.
The senator expressed concern that the SEC claims to have all the tools necessary for regulation, but criticized how they are applied. Specifically, she highlighted the agency’s “regulation by enforcement” strategy, which has resulted in numerous lawsuits. Additionally, she argued that the SEC’s use of sanctions to regulate the industry was wrong.
“You can commit fraud with yachts, with works of art, with coins, with minerals. It’s not the asset itself that is fraudulent,” she said.
On the other hand, Lummis agreed that Congress needs to regulate crypto in the country and not leave the entire mandate to the SEC. An investigative journalist echoed this sentiment, criticizing Congress for neglecting its own duties and unfairly placing the blame on the SEC for regulatory confusion in the crypto space.
“Congress, including Lummis, should write the rules first!” Instead, Gensler let the referee play, making the whole situation seem like a game of dodgeball without a rulebook. Lummis is working with Senator Gillibrand on a proposal – because maybe someone has finally realized that Congress should stop pointing fingers and start writing laws,” JungleIncXRP wrote.
Read more: Crypto regulations: what are the advantages and disadvantages?
This debate comes just days after SEC commissioners appeared for a two-day session before House committees. The Congressional and Senate Banking Committees have examined the agency’s handling of crypto regulations.
Lummis is not alone in opposing the SEC’s approach. As BeInCrypto reported, 42 members of Congress are also calling on the securities regulator to allow banks to keep their assets. crypto.
As the US elections approach, the future of SEC Chairman Gary Gensler is uncertain. Donald Trump has vowed to impeach him if elected, while Kamala Harris narrowly leads the race, according to Polymarket.
Despite growing calls for Gensler’s exit from the crypto community, Harris could potentially name him Treasury secretary if she wins the presidency.
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