Regulation
Senator Cynthia Lummis Accuses US SEC of Overreach In Coinbase Case
Republican Senator Cynthia Lummis of Wyoming has filed an amicus brief supporting Coinbase’s legal battle with the U.S. Securities and Exchange Commission (SEC). The filing was submitted to the U.S. Court of Appeals for the Second Circuit as part of Coinbase’s appeal regarding the SEC’s enforcement action against the exchange.
The SEC had accused Coinbase of operating as an unregistered exchange, broker, and clearing agency.
Senator Cynthia Lummis Says SEC Undermines Congress in Coinbase Lawsuit
In a recent brief, Senator Cynthia Lummis accused the SEC of exceeding its authority under Chair Gary Gensler’s leadership. Lummis argued that the SEC’s enforcement actions undermined Congress’s role in regulating cryptocurrencies. She criticized the agency for reinterpreting securities laws to target digital asset platforms without congressional approval.
Lummis emphasized the importance of Congress in crafting a clear legislative framework for digital assets. She stated that the SEC’s approach to regulation was unconstitutional and violated the separation of powers between the legislative and executive branches.
This move comes just days after Senator Cynthia Lummis was voted to chair the Senate’s Digital Assets Subcommittee. She aims to establish clear rules for cryptocurrencies and integrate Bitcoin into the U.S. financial system. Senator Cynthia Lummis emphasized the need for swift action to maintain the country’s financial innovation and investor protection leadership.
Legal Background of The Case Against Coinbase
The SEC filed a lawsuit against Coinbase in 2023, alleging that the company operated as an unregistered exchange, broker, and clearing agency. The top crypto exchange challenged the lawsuit, claiming the SEC’s enforcement was based on an overbroad interpretation of securities laws. The case was moved to the U.S. Court of Appeals after a lower court allowed Coinbase to appeal.
Senator Cynthia Lummis’s brief argued that the SEC’s tactics were a form of “legislation by enforcement.” She noted that Congress, not the SEC, has the authority to define regulatory boundaries for cryptocurrencies.
However, despite the ongoing SEC lawsuit, the top crypto exchange continues its global expansion. Coinbase secured a VASP license in Argentina, reinforcing its commitment to regulated growth. Matías Alberti will lead operations, aiming to strengthen the platform’s presence in the region.
Judicial Oversight on SEC’s Authority
Additionally, Lummis highlighted the need for the judiciary to intervene in cases involving the SEC’s enforcement of digital asset regulations. She stressed that the Second Circuit Court should provide clarity on when digital assets qualify as securities. This ruling, according to Senator Cynthia Lummis, could have effects on ongoing cases, including lawsuits against other exchanges.
The brief also pointed out that Congress has been working on legislation to address the complexities of regulating digital assets. Senator Cynthia Lummis cited her collaboration with Senator Kirsten Gillibrand on a bill to clarify the roles of the SEC and the Commodity Futures Trading Commission in overseeing cryptocurrencies.
Since the departure of Gary Gensler as SEC Chair, the agency’s stance on crypto regulation is expected to evolve. Acting Chair Mark Uyeda recently announced the creation of a crypto task force aimed at establishing a more balanced regulatory framework.
Ronny Mugendi
Ronny Mugendi is a seasoned crypto journalist with four years of professional experience, having contributed significantly to various media outlets on cryptocurrency trends and technologies. With over 4000 published articles across various media outlets, he aims to inform, educate and introduce more people to the Blockchain and DeFi world. Outside of his journalism career, Ronny enjoys the thrill of bike riding, exploring new trails and landscapes.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
The U.S. Securities and Exchange Commission (SEC) has acknowledged Nasdaq’s 19b-4 filing for the Canary Litecoin ETF. This marks a key step in the process of approving a spot Litecoin ETF, as the agency now seeks public input before making a decision.
SEC Requests Public Comments on Canary Litecoin ETF
The SEC has asked for public comments on the Canary Litecoin ETF filing. Comments must be submitted within 21 days after the proposal is published in the Federal Register.
This step is part of the regulatory process for approving or rejecting the exchange-traded fund (ETF).
Nasdaq initially submitted the 19b-4 form on January 16, 2025. This document is required when an exchange requests a rule change to list and trade a new product. Once the SEC acknowledges the filing, the review period begins, which can take up to 240 days.
First Altcoin ETF Filing Acknowledged by SEC
Eric Balchunas, a senior ETF analyst at Bloomberg, noted that this is the first time the SEC has acknowledged a 19b-4 filing for an altcoin ETF.
This suggests progress in the approval process for crypto ETFs beyond Bitcoin and Ethereum.
“Throw in the comments from SEC on the S-1, and this filing is by far the furthest along checking all the boxes,” Balchunas said in a post on X. He also questioned whether the SEC would take the full 240-day review period or reach a decision sooner.
This Is A Developing News, Please Check Back For More
Kelvin Munene Murithi
Kelvin is a distinguished writer with expertise in crypto and finance, holding a Bachelor’s degree in Actuarial Science. Known for his incisive analysis and insightful content, he possesses a strong command of English and excels in conducting thorough research and delivering timely cryptocurrency market updates.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Regulation
Pro-crypto Howard Lutnick Calls For Audit Of US Stablecoins Pro-crypto Howard Lutnick Calls For Audit Of US Stablecoins
Howard Lutnick, Donald Trump’s pick for Commerce Department Chief, advocated for stablecoin regulations in the United States. During his confirmation hearing today, Lutnick suggested that US stablecoins should undergo regular audits and be backed by US Treasuries.
Amid Trump’s stablecoin advancements, Howard Lutnick highlighted the significance of stablecoin regulation. The Trump pick’s suggestion underscores the necessity of a secure and reliable financial ecosystem.
Stablecoins Should Be Audited: Howard Lutnick
In his confirmation hearing, Howard Lutnick, the CEO of Cantor Fitzgerald and Trump’s nominee for Commerce Secretary, advocated for stablecoin regulation. Specifically, he suggested that US dollar-backed assets should be audited and backed by US Treasuries, emphasizing the need for greater oversight.
Further, Lutnick pushed back against allegations that stablecoin issuers facilitate illicit activities, asserting that malicious actors are misusing these assets for their own purposes. He added, “It’s like blaming Apple because criminals use Apple phones.”
Moreover, Lutnick championed the growth of artificial intelligence in the US. He believes that AI could tackle the growing illicit activities that utilize blockchain.
Cantor Fitzgerald CEO Defends Tether
While Howard Lutnick’s connections with the stablecoin issuer Tether has recently raised concerns, he supported the platform. He stated, “Tether did no business with anyone that wasn’t KYC-appropriate.” He added that he has mandated Tether to comply with US regulations. In addition, drawing a parallel with traditional finance, Howard Lutnick stated, “We don’t pick on the US Treasury when criminals use the US dollar.”
Recently, Senator Elizabeth Warren expressed concerns regarding Lutnick’s deep involvement with Tether. In a letter written on January 21, she wrote,
While you have agreed to divest your interest in Cantor Fitzgerald, which holds a 5% stake in Tether, and serves as Tether’s asset manager, this divestment does not end the questions about your deep personal ties to the company or its affiliates.
Donald Trump Promotes Stablecoin Development
In a recent development, Donald Trump signed an executive order to promote the growth of cryptocurrencies, including stablecoins. In his crypto-focused proposal, Trump highlighted his intention to “promote the development and growth of lawful and legitimate dollar-backed stablecoins worldwide.”
Trump also projected his skeptic approach to central bank digital currencies (CBDCs). He strictly banned agencies from issuing and establishing CBDCs.
Donald Trump’s crypto promotion and Howard Lutnick’s stablecoin regulation agenda are poised to strengthen the US crypto market. The community remains anxious about Trump’s further actions that could significantly impact the global crypto industry.
Nynu V Jamal
Nynu V Jamal is a passionate crypto journalist with three years of experience in blockchain, web3, and fintech spheres. She has established herself as a knowledgeable and engaging voice in the cryptocurrency and blockchain space. Her experience as an Assistant Professor in English Language and Literature has further added to her quest for crafting informative, well-researched, and accessible content.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Following its 2-day FOMC meeting, the US Federal Reserve has decided to keep interest rates unchanged. The Fed is expected to hold off on cutting rates for the most part of this year following three consecutive rate cuts last year.
Fed Rate Cut: Federal Reserve Keeps Rates Unchanged
In a press release, the Federal Reserve announced that it will keep interest rates steady at the 4.25% to 4.5% range. This decision is in line with expectations, as traders predicted that there was a 99.5% chance the Fed would reach this decision.
This comes despite calls from US President Donald Trump for the Fed to lower rates while reaffirming his commitment to make the US the crypto capital. The Fed’s decision to keep interest rates unchanged is significant for the crypto market, considering how such a move could create a bearish sentiment among investors.
Investors are less likely to invest in risk assets like cryptocurrencies in such situations, especially if the Fed is hawkish. Now, all eyes will be on the Federal Reserve Chair Jerome Powell’s speech to determine where the US Central Bank stands regarding its outlook on the economy.
The crypto market could witness a significant rebound if Powell projects a dovish stance from the Fed in his speech. However, the Bitcoin price risks another decline if the Fed Chair projects a hawkish stance.
Boluwatife Adeyemi
Boluwatife Adeyemi is a well-experienced crypto news writer and editor who has covered topics that cut across DeFi, NFTs, smart contracts, and blockchain interoperability, among others. Boluwatife has a knack for simplifying the most technical concepts and making it easy for crypto newbies to understand. Away from writing, He is an avid basketball lover and a part-time degen.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Bitcoin price prediction 2025 – Will institutional inflow drive growth?
Is Solaxy Meme Coin the Solution?
Meme Coin Frenzy Highlights Solana dApp Limitations
Ethereum Large-Scale Transactions Show No Significant Upsurge, What’s Holding Whales Back?
BONK Price Drops 17%—Is This Newcomer the Next Big Profit Maker?
Digital Currency Group (DCG) Launches Fortitude Mining
2.52 Million Altcoins Are Ruining Crypto’s Future
Animoca Brands Valuation Tanks 75% In Two Years, Here’s Why
Crypto exchange BingX hacked for $43 million
Are The Big Players Losing Interest?
Hong Kong’s Securities Association Tips Authorities On Crypto Self-Regulation
Coinbase cbBTC Set to go Live on Solana
2.52 Million Altcoins Are Ruining Crypto’s Future
Animoca Brands Valuation Tanks 75% In Two Years, Here’s Why
Crypto exchange BingX hacked for $43 million
Are The Big Players Losing Interest?
Hong Kong’s Securities Association Tips Authorities On Crypto Self-Regulation
Coinbase cbBTC Set to go Live on Solana
-
Regulation23 hours agoFederal Reserve Keeps Interest Rates Unchanged
-
Bitcoin22 hours agoWho’s In Control? New Bitcoin Investors Now Hold Over 50% Of The Market
-
Market22 hours agoBTC Price Holds Steady as Whale Activity Hits One-Year Low
-
Regulation22 hours ago
Pro-crypto Howard Lutnick Calls For Audit Of US Stablecoins Pro-crypto Howard Lutnick Calls For Audit Of US Stablecoins
-
Bitcoin21 hours agoWhy Is It Bullish for Bitcoin and Crypto?
-
Market21 hours agoCardano Promises Governance Changes After Plomin Hard Fork
-
Market8 hours agoRipple analyst tips this sub-$1 altcoin over XRP for its huge rally potential
-
Market20 hours agoBinance May Face Criminal Charges In Spanish Court
✓ Share: