Senator Cynthia Lummis joins deniers in Coinbase lawsuit

Senator Cynthia Lummis has joined the call to dismiss the SEC’s lawsuit against Coinbase.

Lummis is teaming up with Senator Kirsten Gillibrand, who has passed a comprehensive bill to regulate digital assets. Lummis argues that the SEC has crossed borders in the context of crypto regulations.

Senator Cynthia Lummis joins deniers in Coinbase lawsuit

Senator Cynthia Lummis stresses that the SEC is crossing borders when it comes to crypto regulations, and an institution that wants to make decisions on issues of great national importance should be supported by explicit congressional authorization. This argument is known as the “main questions doctrine”. The key questions doctrine focuses on the impact of an issue on the economy and the public, and the authority of a federal agency to enforce new regulations.

Lummis also drew attention to the economic and political importance of crypto assets, “The regulation of crypto assets is an issue of great economic and political importance. “This is an issue that has been addressed by many sessions of Congress and legislative proposals.” It also highlights the increase in the value of crypto assets.

Other companies supporting this view also shared their views in statements called “friendly briefings”. Venture capital firms Paradigm and a16z pointed to the economic importance of the crypto industry, noting that it is an industry where billions of dollars of transactions take place on a daily basis.

However, it is unclear how much weight the doctrine will hold in the future. Last month, a federal judge dismissed the allegation in a lawsuit between the SEC and Terraform Labs, stating that the industry did not have economic and political significance.