Senator Lummis Fights Against Biden's Crypto Crackdown

Senator Cynthia Lummis opposes the Biden administration's tough regulations on the cryptocurrency sector amidst global regulatory pressures. As a significant proponent of Bitcoin and cryptocurrencies, Lummis criticized the harsh stance taken by the U.S. government, particularly condemning the Department of Justice's (DOJ) aggressive labeling of non-custodial software as a money transmission service.

Lummis believes this designation contradicts Treasury guidelines and common sense, infringing upon fundamental American property rights. She remains dedicated to safeguarding individuals' rights to manage their own cryptocurrency assets, voicing strong disapproval of the administration’s approach to key Bitcoin and decentralized finance (DeFi) principles. Throughout 2023, Lummis disapproved of the Securities and Exchange Commission’s (SEC) strict actions against the crypto industry.

She criticized the SEC’s controversial Staff Accounting Bulletin 121, arguing that it represents regulatory overreach and improperly expands the SEC's jurisdiction by classifying nearly all crypto assets as securities. Lummis supported legal actions favoring crypto companies, like her amicus brief for Coinbase against the SEC, insisting that Congress should define crypto regulations—not the SEC. Following Judge Analisa Torres's decision that XRP is not a security, Lummis called for clear regulatory guidelines for digital assets.

She emphasized the need to properly apply the Howey Test to digital currencies, a standard for determining whether something is secure. Together with Senator Kirsten Gillibrand, Lummis introduced the Lummis-Gillibrand bill to clarify the regulatory framework for digital assets like XRP and align their treatment with legal standards. Meanwhile, Bitcoin’s value fluctuates amid these regulatory uncertainties, recently trading at $57,800 after a minor slump.

Senator Lummis’s firm stance and legislative efforts underscore a significant divide between cryptocurrency supporters and federal regulators, highlighting the ongoing debates over digital currency management and government control.