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Wyoming Senator Cynthia Lummis criticized the US Securities and Exchange Commission (SEC) and its chair, Gary Gensler, urging for improved crypto regulation in the country.
Many within the crypto community have also expressed frustration, accusing Congress of unfairly placing the blame solely on the SEC.
Senator Lummis Predicts Gary Gensler’s Exit as SEC Chair
Speaking on CNBC’s Squawk Box, Lummis suggested that Gensler may step down as SEC chair next year, though she acknowledged that he “loves the job” and might not want to leave. She noted, however, that this scenario could change if Vice President Kamala Harris wins the November elections.
Lummis voiced her disapproval of Gensler, primarily due to his failure to recognize Bitcoin (BTC) and Ethereum (ETH) as commodities. She also implied that other cryptocurrencies may qualify as commodities and called for clearer regulatory guidelines.
“We need to have a clear definition. The Howey Test is available to us, and as it has been updated, there are maybe other assets just besides Bitcoin and Ethereum that would qualify for the jurisdiction of the Commodity Futures Trading Commission,” the Senator added.
Read more: Who Is Gary Gensler? Everything To Know About the SEC Chairman
Lummis indicated the need for clearer crypto regulation in the US, saying it would give clarity to companies. She highlighted the EU “very effective” approach to crypto regulation, urging the US not to let other countries get ahead.
The Senator expressed concern that the SEC claims to have all the necessary tools for regulation, but criticized how they are being applied. Specifically, she pointed to the agency’s strategy of “regulation by enforcement,” which has resulted in numerous court cases. Additionally, she argued that the SEC’s use of penalties to regulate the industry was misguided.
“You can commit fraud with yachts, with art, with coins, with minerals. It is not the asset itself that is fraudulent,” she said.
On the other hand, Lummis agreed that Congress needs to regulate crypto in the country and not leave the full mandate to the SEC. One investigative journalist echoed this sentiment, criticizing Congress for neglecting its own duties and unfairly placing the blame on the SEC for the regulatory confusion in the crypto space.
“Congress, including Lummis, should be writing the rules in the first place! Instead, Gensler’s left playing referee, making the whole situation look like a game of dodgeball with no rulebook. Lummis is working with Senator Gillibrand on a proposal — because maybe someone finally realized that Congress should stop pointing fingers and start writing laws,” JungleIncXRP wrote.
Read more: Crypto Regulation: What Are the Benefits and Drawbacks?
This debate comes just days after the SEC commissioners appeared for a two-day session before House committees. Both Congress and the Senate Banking Committees reviewed the agency’s handling of crypto regulations.
Lummis isn’t alone in opposing the SEC’s approach. As BeInCrypto reported, 42 Congressmen are also calling on the securities regulator to allow banks to custody crypto.
As the US elections near, SEC Chair Gary Gensler’s future is uncertain. Donald Trump has pledged to remove him if elected, while Kamala Harris narrowly leads the race, according to Polymarket.
Despite the growing calls for Gensler’s exit from the crypto community, Harris could potentially appoint him as Treasury Secretary if she wins the presidency.