The US Senator Cynthia Lummis has submitted an amicus briefly supporting Coinbase in its continuous legal fight against the Securities and Exchange Commission (SEC), which accuses the agency of exceeding its authority and undermining congress supervision.
The Wyoming Republican, a long -term advocate for crypto, described the enforcement -oriented regulatory strategy of the SEC as a violation of constitutional principles.
Amicus letter
In her application to the American Court of Appeal for the second circuit, Lummis criticized the SEC approach under former chairman Gary Genler, of which she said it reinterpretation without transparency or consultation.
According to Lummis
“The tactic of the SEC ignores the separation of powers by the Constitution and endangers the innovation and growth of digital assets.”
The SEC started a lawsuit against Coinbase in 2023, claiming that the company operated as a non -registered broker, exchange and clearinghouse. However, the stock market has disputed these claims and claims that the regulations of the agency are not suitable for the unique characteristics of digital assets.
The case has emerged as a milestone moment to determine how cryptocurrencies are controlled under American legislation. Lummis’s assignment states that the SEC Inconsistent has applied the Howey test, a legal framework for defining securities, creating legal uncertainty for companies and consumers.
She emphasized that such interpretations can be better left to the congress, which can make laws that balance innovation with consumer protection.
Changer
The submission comes when the SEC leadership changes under the Trump government, whereby acting chairman Mark Uyeda indicates a shift in priorities. Uyeda recently announced the formation of a crypto task force to create a more pragmatic regulatory framework.
This development has fueled optimism among crypto proponents that the agency can take a less opponent. Lummis, who is now leading the digital assets panel of the Senate Bank Committee, has long been defended for two -part efforts to clarify supervision of the regulations for crypto.
She was a co-author of the legislation with senator Kirsten Gillibrand (DN.Y.) and presented clearer responsibilities of responsibilities between the SEC and the Commodity Futures Trading Commission (CFTC). The bill is also intended to streamline the compliance requirements for crypto platforms, which provides much needed clarity for industry.
With the Coinbase case now before the second circuit, Lummis has insisted on the court to curb the approach of the SEC guided by the SEC. She called on judges to strengthen the separation of powers by ensuring that regulatory decisions reflect the legal intention instead of the agency of the agency.
According to Lummis:
“The SEC cannot act and both legislator and enforcer.”
She further argued that the Coinbase case offers a chance to set up a more balanced framework for digital assets.
