American senator Cynthia Lummis has filed a brief AMICUS brief supporting Coinbase in her current legal battle against Securities and Exchange Commission (SEC), accusing the agency of overcoming its authority and undergoing the surveillance of the Congress.
The Wyoming Republican, a long -standing defender of the crypto, described the regulatory strategy focused on the application of the dry as a violation of constitutional principles.
Amicus brief
In her file with the American Court of Appeal for the second circuit, Lummis criticized the approach of the dry under the former president Gary Gensler, who, according to her, involved reinterpreting the laws on securities without transparency or consultation.
According to Lummis
“SEC tactics do not take into account the separation of the powers of the Constitution and endangers the innovation and growth of digital assets.”
The SEC brought legal action against Coinbase in 2023, alleging that the company operated as an unregistered broker, exchange and clearinghouse. However, the exchange disputed these complaints, claiming that agency regulations are not adapted to the unique characteristics of digital assets.
The case appeared as a historic moment to determine how cryptocurrencies are governed under American law. Lummis’s thesis maintains that the SEC has applied the Howey test inconsistently, a legal framework to define securities, creating regulatory uncertainty for businesses and consumers.
She stressed that such interpretations are better left in the congress, which can develop laws that balance innovation with consumer protection.
Changing guardian
The deposit comes as the SEC is under management changes under the Trump administration, the acting president Mark Uyeda reporting a change of priorities. Uyeda recently announced the training of a cryptographic working group to create a more pragmatic regulatory framework.
This development has fueled optimism among the defenders of cryptography that the agency can adopt a less contradictory position. Lummis, who now heads the Senate’s Banque Committee Committee, has long defended bipartite efforts to clarify the regulatory surveillance of the crypto.
It co-wrote legislation with Senator Kirsten Gillibrand (DN.Y.) offering a clearer division of responsibilities between the SEC and the Commodity Futures Trading Commission (CFTC). The bill also aims to rationalize the compliance requirements for cryptographic platforms, which gives an essential clarity to industry.
With the Coinbase affair now before the second circuit, Lummis urged the court to limit the approach led by the application of the SEC. She called on the judges to strengthen the separation of powers, ensuring that regulatory decisions reflect legislative intention rather than overcoming the agency.
According to Lummis:
“The dry cannot act both as a legislator and enforcement.”
It also argued that the Coinbase affair has an opportunity to establish a more balanced framework for digital assets.
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