The crypto industry is currently facing a crackdown by the SEC, with lawsuits looming over major players such as Coinbase and Binance. It's clear that the regulator is taking a strong stance against any perceived wrongdoing and is committed to enforcing the law. Investors must take note of these developments and exercise caution when dealing with cryptocurrencies.
The SEC issued a policy called "Staff Accounting Bulletin 121" in March 2022, which affects the financial industry. The policy requires financial firms holding customers' crypto assets to have them on their balance sheets and warn investors about the risks of safeguarding those assets. However, the GAO has stated that the SEC should have sent this policy guidance to Congress for approval.
Senator Lummis has recently expressed her intention to prevent a certain bulletin from becoming legally binding, as she perceives it as an instance of the SEC exceeding its authority. Lummis is confident that she can obtain backing for this endeavor over the next few weeks in both the Senate and the House. She argues that the bulletin has the potential to harm consumers in case of a digital asset custodian's failure.
During an interview with Yahoo Finance LIVE, Lummis stated that the rule regarding cryptocurrency is not based on common sense. Although the rule was initially introduced as a staff bulletin, it is binding. Lummis is currently working on several initiatives to provide the crypto industry with more clarity in Washington. One of her initiatives is a comprehensive piece of crypto legislation that she co-sponsored with Senator Kirsten Gillibrand (D-NY). This legislation aims to outline the regulatory framework for the sector.
Lummis is positive about the prospects of her legislation passing in early 2024, and is open to exploring opportunities to include parts of it in other legislative packages. She believes in the potential of her legislation to bring about constructive changes.
Recently, a part of a bill that addresses terrorist financing was added to the Senate's defense spending package, also known as the National Defense Authorization Act. The bill is currently being refined in collaboration with the House of Representatives.
Recently, a part of a bill that addresses terrorist financing was added to the Senate's defense spending package, also known as the National Defense Authorization Act. The bill is currently being refined in collaboration with the House of Representatives.
As illustrated by the concerns that Hamas is using cryptocurrency to help finance its savage treatment of Israeli civilians and military personnel," Lummis said. "It would help."
Lummis supports the crypto framework proposed by the House Financial Service Committee Chair Patrick McHenry (R-NC).
Senator Gillibrand and I have identified some minor differences between the House and Senate versions of the bill, especially related to stablecoins. However, we believe that these differences can be resolved and we are optimistic about finding a solution now that the House has a new speaker and is back in session.
Senator Lummis has been working closely with McHenry to advance the stablecoin component of the bill. She is confident that the differences between the House and Senate versions can be ironed out and that they may be able to present a unified bill before the end of the year.
Lummis emphasizes that there is a pressing need for a clear regulatory framework around stablecoins and hopes that the bill will provide the much-needed clarity.
