Crypto Queen Cynthia Lummis Is Not a Fan of SEC’s Crypto Crackdown
by Oskar Trotman
Wyoming Senator Cynthia Lummis is not supportive of the Securities and Exchange Commission’s (SEC) efforts to curtail the blockchain industry development through a series of controversial policies and lawsuits, such as the highly publicized case against Ripple, which might result in a $770 million fine for violating securities laws.
During a recent interview with Yahoo Finance, the Republican Senator said: “I think the SEC is overreaching.” The SEC legal offensive is aimed against several big players in the crypto industry, and aside from the Ripple lawsuit, SEC lawyers have been developing cases against other blockchain entities such as Binance and Coinbase.
Lummis Is Garnering Support in the House and Senate
The Senator has made it publicly known that she is working on garnering support to block one policy known as “Staff Accounting Bulletin 121,” which requires financial companies holding clients’ crypto assets to do so on their balance sheets and notify investors about the risks of protecting those same assets.
However, the Government Accountability Office (GAO) voiced its opinion about these SEC policies, saying that the proposed guidance should have been submitted to Congress for its approval.
Now, Senator Lummis will attempt to prevent this policy from becoming binding and is confident she can muster sufficient support in both Legislative Branches in the upcoming weeks. According to the Wyoming Senator, this bulletin will be detrimental to crypto customers in case the company holding their assets faces a collapse.
“It’s not a common-sense rule. It was issued as a staff bulletin, but the bulletin is binding,” said Lummis during her Yahoo Finance interview.
Who Is The “Crypto Queen”?
Cynthia Lummis is not a conventional crypto enthusiast. The 68-year-old Wyoming Senator has been active in politics for over 37 years at the state and national level. The Senator has no background in technology. Her formal education is in biology and animal science, something not surprising for a representative from a ranching U.S. state.
Yet, over the past decade, Lummis has been an advocate for cryptocurrencies and, in recognition of her activities, was named the “crypto queen.” Lummis deserves this nickname, especially after becoming the first Senator to purchase a cryptocurrency after she took her son-in-law’s advice and bought Bitcoin. In 2021, it was estimated that Lummis owned $230,000 worth of Bitcoin.
Working on Several Fronts
Senator Lummis is actively working to provide more clarity for her colleagues in Washington and lead initiatives to formulate and adopt a regulatory framework for the crypto industry. The Wyoming Senator has a crypto bill co-sponsored with Democratic Senator Kirsten Gillibrand from New York, which can serve as an outline for regulating the blockchain sector. The Crypto Queen hopes that this legislation will pass by 2024 and is open to making adjustments to her bill.
Lummis has supported other crypto framework initiatives in the House. The Senator’s efforts encourage crypto backers and investors, who share her belief that blockchain technology can provide greater privacy and speedier transactions, especially for people living under repressive regimes and in hyperinflation.