US Senator Cynthia Lummis has opposed the SEC's actions in the case against Coinbase, claiming the commission is overreaching its authority.
Lummis's Critique
Lummis has filed an amicus curiae brief in the Coinbase vs SEC case at the US Court of Appeals for the Second Circuit. She believes the SEC's actions are an unlawful power grab.
Legal Aspects and Impact on Innovation
Lummis criticizes SEC Chair Gary Gensler for aggressive tactics and claims the SEC is secretly altering laws like the Howey Test. Lummis argues that only Congress can decide if digital assets are securities or commodities. She warns the SEC is misusing nearly 100-year-old laws to regulate new technologies, potentially harming the digital asset industry and stifling innovation.
Future Proceedings and Possible Outcomes
If the court favors Coinbase, it could clarify the regulatory limits of the SEC. Lummis warns that without intervention, the unchecked power of the SEC could hinder industry growth and create a confusing legal environment. Recently, Coinbase won a partial victory when the US Court of Appeals stated that the SEC did not provide enough explanation for denying Coinbase's request for clear regulatory guidelines. This ruling may impact the ongoing case and push the SEC to clarify its stance.
The outcome of the case could have significant effects on the industry, with several lawsuits challenging the SEC's authority.
