• Senator Lummis filed an amicus brief supporting Coinbase against the SEC.
• The senator urged the court to clarify when digital assets qualify as securities.

Senator Cynthia Lummis has filed an amicus brief backing Coinbase’s legal battle with the U.S. Securities and Exchange Commission (SEC). The Wyoming Republican accuses the agency of overstepping its authority and undermining Congress’s regulatory role.

Lummis criticized the SEC’s enforcement-driven approach under former Chair Gary Gensler. She described it as “un-American” and claimed it disregards the constitutional separation of powers. According to the senator, the SEC’s aggressive reinterpretation of securities laws creates uncertainty for digital asset companies.

The legal dispute began when the SEC sued Coinbase in 2023. The commission alleged that the exchange operated without proper broker, exchange, and clearing agency registration. Coinbase contested the claims, asserting that the SEC’s regulations are outdated and unconstitutional.

Lummis Pushes for Clear Crypto Regulations

Lummis emphasized that applying decades-old securities statutes to modern digital assets is problematic. She argued that Congress is better equipped to craft a balanced regulatory framework. She also highlighted the need for clear laws distinguishing between securities and commodities.

The senator urged the Second Circuit Court to step in and define the SEC’s regulatory limits. She stated that regulatory decisions should reflect legislative intent, not agency overreach. The outcome of this case could impact other ongoing lawsuits, including those against Ripple Labs and Binance.

Lummis’s brief is seen as part of a broader push for a shift in crypto regulation. Recent changes in SEC leadership under President Donald Trump could influence the agency’s stance. Acting Chair Mark Uyeda has already announced plans to form a crypto task force focused on creating clearer guidelines.

Additionally, Lummis’s new role as chair of the Senate Banking Committee’s digital assets panel positions her as a key figure in crypto regulation. She has collaborated with Senator Kirsten Gillibrand on legislation that aims to clarify the roles of the SEC and the Commodity Futures Trading Commission (CFTC).

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