In the face of increasing global regulatory pressure on the cryptocurrency industry, the Biden administration's intensified crackdown and actions by regulators have prompted Senator Cynthia Lummis to issue a strong statement against the US government's stance on the industry.
Senator Lummis, a prominent supporter of Bitcoin and the cryptocurrency market in general, has defended the companies and players involved in the ongoing regulatory push.
Loomis condemns the Justice Department's “overly aggressive” stance.
Loomis expressed his deep concern bidder The Justice Department's “overly aggressive” argument that non-custodial programs could be classified as a money transfer service.
The Senator considered that this position contradicts current Treasury Department directives, lacks common sense, and violates the rule of law.
Loomis also stressed that arguments against self-protection programs pose a threat to basic property rights that are core to being an American.
Loomis affirmed her commitment to fighting for the rights of individuals to keep their keys and operate their nodes, expressing her dissatisfaction with the Biden administration’s criminalization of the basic principles of the Bitcoin (BTC) network and Decentralized finance (Davy).
Senator Loomis had previously refused The Securities and Exchange Commission (SEC) has been escalating the crackdown on the cryptocurrency industry throughout 2023.
She criticized the SEC's actions as “unnecessary” and “overreach,” and specifically opposed the agency's controversial new cryptocurrency policy, known as Staff Accountability Bulletin 121, issued in March 2022.
Loomis has also filed Amicus curiae brief In support of the Coinbase exchange against the SEC's lawsuit, arguing that Congress should be responsible for drafting cryptocurrency regulations rather than the SEC.
The pro-crypto senator claimed that the SEC has exceeded its mandate by attempting to classify nearly all crypto assets as “securities,” thus violating Congress’ legislative authority and extending beyond the agency’s purview.
Clear guidelines for regulating cryptocurrencies
In another statement supporting the major players in the cryptocurrency market, Senator Lummis called for immediate action to clarify the matter Regulatory guidelines In response to Judge Analisa Torres' ruling that XRP should not be considered a security.
At the heart of the debate is the Howey test, a legal standard used to determine whether an investment qualifies as a security. Loomis stressed the importance of maintaining the integrity of this test while recognizing the need to apply it appropriately to digital assets.
To address these issues, Senator Lummis, along with Senator Kirsten Gillibrand, introduced the Loomis-Gillibrand Act. The legislation aims to provide regulatory clarity to Digital assets Such as XRP, and align their treatment with the interpretation of the Howey Test as established by the Southern District of New York.
The largest cryptocurrency on the market, Bitcoin, is trading at $57,800 after hitting a low of $56,400 in the early hours of Wednesday.
Featured image from Yahoo, chart from TradingView.com