- Lummis warns that the US is lagging behind the EU when it comes to crypto regulation.
- Criticizes SEC enforcement actions without clear rules.
- Calls for Congress to intervene with a regulatory framework.
Senator Cynthia Lummis warned that the United States is falling behind in regulating digital assets, particularly compared to the European Union, during a recent interview on CNBC’s Squawk Box.
“The EU is ahead of us,” Lummis said, emphasizing the importance of the United States taking the lead in regulating financial services and digital assets.
She went on to criticize the Securities and Exchange Commission (SEC) for its heavy-handed enforcement strategy, particularly under Chairman Gary Gensler.
“They regulate through coercive measures with sanctions against the industry,” she said, highlighting the lack of clear rules for the sector.
Lummis also predicted a change in leadership at the SEC depending on the outcome of the 2024 election, particularly if Donald Trump wins.
She believes Congress needs to step in and create a comprehensive regulatory framework.
“Congress needs to regulate this and step in,” she stressed, arguing for a clear distinction between assets like Bitcoin and Ethereum, which she said are clearly commodities.
Lummis suggested that Republican leadership in the Senate would accelerate progress.
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“Tim Scott, as chairman of the banking committee, would push for a statutory framework for digital assets,” she added.
She concluded by saying that giving the Commodity Futures Trading Commission additional resources would ensure proper oversight, contrasting with the current fragmented approach which is hampering the sector’s growth potential.
