Coinbase vs. SEC: Crypto Regulation Debate Intensifies as Lummis Accuses SEC of Power Abuse

The legal clash between Coinbase and the U.S. Securities and Exchange Commission (SEC) has taken a new turn, with Senator cynthia lummis cynthia lummis Cynthia Lummis is a senator from Wyoming, United States. She has a net worth ranging from $20 million and $75 million. On her son-in-law's advice, she purchased Bitcoin and became the first U.S senator to possess cryptocurrency. She possesses no less than $230,000 worth of Bitcoin. She adopted office on January 3, 2021, the term terminates on January 3, 2027. She has always been focused on advocating for Wyoming's future. She struggled her entire career fighting for Wyoming families, communities, businesses, and values. Beginning at the halls of the Wyoming House to the Halls of the U.S. House.    Lummis was born on September 10, 1954, and graduated from the University of Wyoming, earning a bachelor's degree in animal science, and biology. She also achieved a Juris Doctor from the University of Wyoming College of Law. Her career experience comprises working as general counsel to previous Wyoming Governor Jim Geringer, Wyoming House of Representatives, as a treasure of Wyoming, and in the United States House of Representatives from Wyoming's at-large congressional district.   In 1990, she also worked as the chair of Mary Mead's gubernatorial campaign and Ray Hunkins's gubernatorial campaign, in 2006, also served on Bob Dole's presidential steering committee in Wyoming. Through her firmly beneficial crypto position, she developed the reception and fair guidelines of computerized resources in the United States. She voluntarily organized a great foundation for herself as a significant Bitcoin financial backer. She is professed to continue encouraging the developing cryptocurrencies industry in the United States and all over the world in 2022. Her urge for transparency on cryptographic forms of money and stable coins in U.S. regulation will maintain on becoming tremendous. She had been always looking for a store of value, and she believes bitcoin specifically is a great store of value and knew that scarcity will protect its value going into the future, unlike the U.S. dollar that they are printing more of every single day.    Investor stepping in to support the crypto exchange. She has filed an amicus brief, accusing the SEC of overstepping its authority and bypassing Congress to impose unclear rules on digital assets.

Lummis Stands Up Against SEC’s Actions

On January 24, Senator Lummis filed an amicus brief with the U.S. Court of Appeals for the Second Circuit, siding with Coinbase in its ongoing legal battle with the SEC.

In her filing, Lummis criticized the SEC’s regulatory approach under former Chair gary gensler gary gensler Gary Gensler is the chairman of the U.S. Securities and Exchange Commission (SEC). His studies in finance and blockchain at MIT have helped him develop U.S. cryptocurrency regulations and policies. Quick Facts Full name Gary Scott Gensler Birth 18-10-1957, Baltimore, Maryland, United States Nationality American Education MBA from the University of Pennsylvania Marital status Married to Francesca Danieli (1986-2006) Net worth Estimated $100 million   Gensler has advocated for enhanced supervision of digital assets, seeking to regulate cryptocurrencies similar to securities. His work at the SEC has focused on safeguarding investors, regulating crypto exchanges, and establishing stablecoin policies.   Gary Gensler - Career Highlights 1997 – Became Assistant Secretary of the Treasury. 2009 – Led CFTC, regulating financial derivatives post-2008 crisis. 2018 – Taught blockchain and crypto at MIT. 2021 – Appointed SEC Chairman, focusing on crypto regulations. 2022 – Proposed stricter rules for crypto exchanges. 2023 – Took legal action against major crypto firms. 2024 – Advocated for stronger stablecoin and DeFi regulations.   Gary has collaborated with multiple lawmakers in formulating crypto policies. Even with disagreements with crypto investors regarding crypto policies, he continues to be a key player in the changing dynamic between regulatory frameworks and blockchain advancement.   Awards & Recognitions of Gary Gensler Year Institution  Description 2009 U.S. Treasury Financial Regulation Leader 2018 MIT Blockchain & Crypto Educator 2021 SEC SEC Chairman Overseeing Crypto Policies 2023 Bloomberg Most Influential Regulator in Crypto 2024 Forbes Top Policy Maker in Digital Assets   Useful Links to Connect With Gary Gensler Platform Link X (formerly Twitter) twitter.com/GaryGensler CFTC website Chairman Gary Gensler   Chairman , calling it opaque and harmful to the separation of powers.

Lummis argues that the SEC has been unfairly reinterpreting existing securities laws without providing clear guidelines, forcing crypto firms to follow new rules without any notice.

Should Congress Control Crypto?

Lummis’s filing strengthens Coinbase’s position, especially regarding the SEC’s use of the Howey Test, a legal standard that determines if an asset is a security. She believes that Congress, not the SEC, should be the one to decide how digital assets are classified and regulated.

Her move comes at a crucial time as the SEC is going through a leadership change. With Mark Uyeda now acting as Chair, there’s speculation that the agency might take a more balanced approach to crypto regulation. Uyeda has already set up a crypto task force to develop a clearer framework, signaling a potential shift in the SEC’s direction.

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Nothing Holds Coinbase Back

The SEC sued Coinbase in 2023, accusing the company of acting as an unregistered broker, exchange, and clearinghouse. Coinbase has pushed back, arguing that the SEC’s rules weren’t designed for digital assets and that its actions are inconsistent.

Despite the ongoing legal issues in the U.S., Coinbase continues to expand globally. Recently Coinpedia news reported that the exchange secured a Virtual Asset Service Provider (VASP) license in Argentina, allowing it to legally operate and grow its presence in the region. 

Under Matías Alberti’s leadership, Coinbase is focusing on building a stronger presence in the Latin American crypto market.

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