Senator Lummis Challenges SEC Overreach in Coinbase Legal Battle

Senator Cynthia Lummis has challenged the SEC’s lawsuit against Coinbase, arguing the agency is exceeding its authority by regulating crypto through enforcement rather than legislation.

In an amicus brief filed with the U.S. Court of Appeals, she accused the SEC of sidestepping Congress to impose outdated securities laws on digital assets.

Lummis, recently appointed chair of the Senate’s Digital Assets Subcommittee, is pushing for clearer regulations. She is working on a bill with Senator Kirsten Gillibrand to define the roles of the SEC and CFTC in overseeing crypto.

The SEC’s case against Coinbase, which began in 2023, claims the exchange operates as an unregistered broker, exchange, and clearing agency. Coinbase has fought back, arguing the regulator lacks a proper framework for crypto oversight.

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With Gary Gensler stepping down as SEC chair, his successor, Mark Uyeda, is forming a task force to reassess crypto regulations. Meanwhile, Coinbase continues expanding globally, securing new regulatory approvals despite ongoing legal battles in the U.S.

Alexander Zdravkov

Alexander has been working in the crypto industry for three years, during which time he has established himself through his active participation in monitoring market dynamics and technological innovations. His interest in cryptocurrencies and new technologies is not just a professional commitment, but a deep personal passion. He follows the news in the sector daily, analyzes trends, and is excited about every new step in the development of blockchain solutions. His enthusiasm drives him to continuously learn and share knowledge, as he sees the future in digital finance and its role in global transformation.