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 US Securities and Exchange Commission’s (SEC) Crypto Task Force is inching toward full operations following the unveiling of team members. US SEC Commissioner Hester Pierce has assembled a dream team cutting across several departments and units of the securities watchdog.
US SEC Confirms Crypto Task Force Members
The SEC’s newly minted Crypto Task Force is raring to go following the confirmation of team members by Pierce. The US SEC Commissioner disclosed the team’s composition in a press release, hinting at a varied selection process.
Pierce stated that the team comprises staff from the Acting Chairman’s office and several divisions within the SEC. Led by Pierce, the Commissioner had a free rein to select the task force members.
“The Crypto Task Force exhibits deep expertise and an enthusiastic commitment to identifying -with the help of other talented staff across the Commission and interested members of the public – workable solutions to difficult crypto regulatory problems.
The 14-man team comprises a Chief of Staff, a Chief Counsel, a Chief Policy Advisor, and a Chief of Operations. The remaining ranks are made up of 10 senior advisors drawn from various units within the US SEC.
The Team Will Solve The Hardest Regulatory Issues
Within days of assuming office, Acting US SEC Chair Mark Uyeda launched the Crypto Task Force to give the agency new direction. The agency is tasked with establishing the criteria for determining whether or not a cryptocurrency is a security.
Weeks after the announcement of the task force, the SEC disclosed that memecoins are not securities, urging the public to remain wary of scams.
Pierce has hailed the new direction of the task force while criticizing regulation by enforcement during the Gensler era. The task force will be the main advisory body to the SEC on crypto-related matters.
As a show of commitment, the Commission has dismissed Kraken’s case, ditching its actions against Coinbase and Gemini as well.
Aliyu Pokima
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.
Investors have their eyes glued to March 7 as a key date that could send the markets on a bigger rally or trigger new bearish sentiments. Several high-profile events and announcements with seismic impact on Bitcoin prices are scheduled for March 7 with the pendulum capable of swinging in any direction.
Key Employment Data And Crypto Summit On The Same Day
On March 7, the US Bureau of Labor Statistics (BLS) will release key employment data to the public to ascertain the strength of the economy. Market participants are bracing for the release of non-farm payroll (NFP) and unemployment rate data, capable of sending the markets into a frenzy.
Strong NFP data suggesting rising wages and low unemployment rates may reduce speculative interest in Bitcoin. Conversely, high unemployment and job losses may see crypto prices spike as investors ditch traditional assets.
Apart from the highly anticipated data, Federal Reserve Chair Jerome Powell is expected to give a speech. Sources say Powell’s speech will revolve around near-interest rate cuts as investors brace for impact.
Finally, on March 7, leading ecosystem players will attend the first-ever White House Crypto Summit. The event will be the first in a series of summits designed to shape crypto policy in the US.
While the Crypto Summit is expected to trigger positive sentiments, pundits expect the event to prop BTC’s march to $150K.
The Rest Of March Will Be Eventful For Bitcoin Prices
While investors look to March 7, the month is littered with events that will have an impact on crypto prices. On March 6, the CFTC will host its CEO forum with stablecoins in the futures market at the fore.
The House Committee on Banking will markup a stablecoin bill at a tentative date in March. Ahead of the markup, US lawmakers have launched a bipartisan crypto caucus to collaborate on digital asset policies.
Following the SEC dismissals of Kraken’s case, the Commission is expected to hold a crypto industry roundtable in March. There is also speculation a nomination hearing date for Paul Atkins as SEC Chair will be mooted in March.
Aliyu Pokima
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.
A new Congressional Crypto Caucus has been established in the U.S. House of Representatives, bringing together lawmakers from both parties to support digital asset policies. House Majority Whip Tom Emmer, a Republican, and Representative Ritchie Torres, a Democrat, are leading the initiative to create a unified voting bloc for crypto-related legislation.
Congress Forms a Bipartisan Crypto Caucus
According to a recent Fox News report, lawmakers in the U.S. Congress have introduced the Crypto Caucus to mobilize support for digital asset laws. The caucus is designed to function as a voting bloc, separate from the existing Congressional Blockchain Caucus, which was founded in 2017. The primary objective is to advance cryptocurrency-friendly policies and ensure regulatory clarity for the industry.
The caucus was formed in response to voter demand for stronger digital asset policies. Millions of Americans cast ballots for candidates prioritizing blockchain technology and crypto-related innovation. Emmer stated that the group will work to maintain the United States as a leader in digital asset development and financial technology.
Additionally, according to Fox News reporter, Eleanor Terrett, Torres said,
“The Congressional Crypto Caucus will be a driving force in advancing policies that foster innovation, protect consumers, and ensure that cutting-edge technology can thrive in the United States.”
Lawmakers Aim to Pass Stablecoin Bills by April
More so, President Donald Trump has directed lawmakers to implement a clear regulatory framework for the digital asset industry. In response, legislators are pushing to finalize stablecoin and market structure bills. Two stablecoin-related bills are already under consideration in the House of Representatives, with industry stakeholders providing input on their provisions.
In the Senate, Republican lawmakers are preparing for a markup session on the GENIUS Act, a stablecoin bill sponsored by Senator Bill Hagerty of Tennessee. The Senate Banking Committee, led by Senator Tim Scott, aims to pass both the stablecoin and market structure bills in time for the President Donald Trump to sign by April.
The Crypto Caucus is expected to play a role in securing bipartisan support for cryptocurrency regulations. While the House works on its legislation, the Senate Banking Committee is advancing efforts to establish stablecoin rules. The GENIUS Act, which focuses on regulatory guidelines for stablecoins, could move forward as early as next week.
Chairman Tim Scott emphasized the urgency of passing crypto-related laws, stating that lawmakers are working to ensure digital assets operate within a clear legal framework.
U.S. Leadership in Blockchain Innovation
The Crypto Caucus seeks to ensure that digital asset policies foster innovation while protecting consumers. Emmer and Torres highlighted that the group will work to create a stable regulatory environment. This will encourage blockchain technology development in the United States.
Torres described the caucus as a nonpartisan coalition committed to advancing digital asset policies.
Most recently, CryptoQuant CEO Ki Young Ju analyzed President Donald Trump’s approach to cryptocurrency, describing it as a strategic move to strengthen U.S. dominance in global markets. Ju pointed out that Trump’s crypto reserve initiative initially prioritized XRP, Solana, and Cardano before later including Bitcoin and Ethereum.
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.
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