Sen. Lummis Urges Second Circuit To Curb SEC's Crypto Overreach

Senator Cynthia Lummis, R-Wyo., has thrown her support behind Coinbase Inc. in its legal battle against the U.S. Securities and Exchange Commission (SEC), urging the Second Circuit to clarify the limits of the SEC's authority in regulating digital assets. In an amicus brief filed Friday, Lummis argued that the SEC's enforcement actions against crypto intermediaries, including Coinbase, undermine congressional efforts to establish a clear regulatory framework for the digital asset industry.

The Case Against Coinbase

The SEC's lawsuit against Coinbase alleges that the company operated as an unregistered securities exchange, broker, and clearing agency, claiming that secondary sales of digital assets on the platform violate securities laws. U.S. District Judge Katherine Polk Failla allowed these claims to proceed but granted Coinbase's request for an interlocutory appeal, enabling the case to go before the Second Circuit for review.