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In an amicus brief filed with the U.S. Court of Appeals, she accused the SEC of sidestepping Congress to impose outdated securities laws on digital assets.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

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.