Senator Cynthia Lummis of Wyoming has voiced strong criticism of the SEC’s handling of cryptocurrency regulation, calling for clear rules instead of enforcement actions. In a recent CNBC interview, Lummis targeted SEC Chair Gary Gensler for relying on enforcement, which she believes is stifling innovation in the U.S. crypto industry. She warned that without clear regulations, the U.S. could fall behind other markets like the EU, which has already implemented comprehensive crypto laws.
Lummis argues that Bitcoin and Ethereum should be treated as commodities under the oversight of the Commodity Futures Trading Commission (CFTC) rather than as securities under the SEC. Along with Senator Kirsten Gillibrand, Lummis has proposed legislation to empower the CFTC and reform regulations, particularly by calling for the repeal of SAB 121, which she believes unfairly burdens the crypto sector.
Despite these criticisms, SEC Chair Gensler maintains that U.S. regulations are already sufficient and continues to defend the agency’s stance. However, he remains silent on Ethereum’s classification as a commodity or security.
