During the interview, Senator Lummis criticized the SEC's aggressive stance and its new crypto policy, "Staff Accounting Bulletin 121," issued in March 2022. This policy requires financial firms to include customers' crypto assets on their balance sheets and provide risk warnings to investors. The Government Accountability Office recently noted that the SEC should have obtained Congressional approval for this policy.
Senator Lummis pledged to block the policy's enforcement, citing it as an example of the SEC overstepping its bounds and potentially harming consumers if a digital asset custodian were to fail.
She also highlighted her efforts to bring transparency to the crypto industry in Washington by co-sponsoring comprehensive crypto legislation with Senator Kirsten Gillibrand. Lummis is hopeful this legislation will pass in early 2024 and is open to incorporating its elements into other legislative packages.
Notably, a portion of Senator Lummis' legislation addressing terrorist financing was included in the Senate's National Defense Authorization Act, underscoring the urgency of crypto regulation. She emphasized the need to combat illicit cryptocurrency uses, including alleged ties to terrorist funding.
Senator Lummis supports the digital asset framework proposed by the House Financial Service Committee, led by Chair Patrick McHenry. She believes that minor differences between the House and Senate versions, especially concerning stablecoins, can be resolved and aims to introduce legislation by year-end. Lummis emphasizes the need for clear industry regulations to encourage innovation and protect investors. Her pro-crypto stance and collaboration with lawmakers aim to balance oversight and industry growth. The crypto community eagerly awaits Washington's developments amid regulatory concerns.
