Lummis warns that the US lags behind the EU in crypto regulation. He criticized the SEC's enforcement actions without clear rules. It is argued that Congress should step in with a regulatory framework.
In a recent interview on CNBC's Squawk Box, Senator Cynthia Loomis warned that the United States is lagging behind in regulating digital assets, especially compared to the European Union.
“The EU is ahead of us” Loomis saidEmphasizes the importance of the US being a leader in financial services and digital asset regulation.
She criticized the Securities and Exchange Commission (SEC) for its heavy-handed enforcement strategy, especially under Chair Gary Gensler.
“They are controlling the industry through enforcement actions with fines,” she said, citing the lack of clear rules for the sector.
Depending on the outcome of the 2024 election, especially if Donald Trump wins, Lummis predicts a change in leadership at the SEC.
She believes Congress must step in and create a comprehensive regulatory framework.
“Congress needs to regulate and weigh this,” she asserted, arguing for a clear distinction between assets like bitcoin and ethereum, which she argued are clearly commodities.
Lummis suggested that Republican leadership in the Senate would accelerate progress.
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“Tim Scott, as Chair of the Banking Committee, will push for a legal framework for digital assets,” she added.
Empowering the Commodity Futures Trading Commission with additional resources will ensure proper oversight, which contrasts with the current fragmented approach that is hampering the growth of the industry, she said.
Related Topics Cynthia Lummisgari Gensler Securities and Exchange Commission (SEC)
