US Senator Cynthia Lummis has filed an amicus curiae brief in the Coinbase vs SEC case, opposing the SEC's 'legislation-by-enforcement' under the Biden administration. She criticizes the SEC's secret reinterpretation of the Howey Test, demanding compliance from digital asset exchanges without congressional guidance.
Lummis emphasizes Congress' constitutional authority to clarify digital asset regulations, expressing concerns over the SEC's expanding regulatory reach. Her brief underscores the separation of powers dilemma posed by the SEC, notably when former Chair Gary Gensler admitted that Congress should tackle digital asset regulation.
Lummis' legal challenge aims to delineate the SEC's authority to prevent stifled innovation and legal uncertainty. The Second Circuit's forthcoming decision may provide much-needed regulatory clarity.
