Cynthia Lummis Slams SEC On Security Vs Commodity Classification: 'Failed To Provide Adequate Legal Guidance'

In the wake of the recent action taken by the Securities and Exchange Commission (SEC) on major cryptocurrency exchanges Binance and Coinbase, Senator Cynthia Lummis (R-Wyo.) has taken a swipe at the SEC, claiming that it has failed institutions in the cryptocurrency space.

What Happened: Lummis on Tuesday said on Twitter that the SEC has not given digital asset exchanges a clear path to register with them. 

"Even worse has failed to provide adequate legal guidance on what differentiates a security from a commodity,” she said.

The Senator went on to say that using regulation by enforcement has failed to protect consumers and that there needs to be a more robust legal framework in place for exchanges so that they can comply.

To that end, Lummis has pushed for the passing of the Lummis-Gillibrand Responsible Financial Innovation Act, calling it a way to create a functional framework that would bring businesses in the industry out of the shadows and back onshore.

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Why It Matters:  Earlier in April, Lummis said that the reason "many young Americans are into Bitcoin BTC/USD" is because it is “sound money.”

Lummis had said the federal government's blank check spending habits, the erosion of the gold standard and the development of the internet are major contributing factors that led to Bitcoin's rise in popularity.

Price Action: At the time of writing, BTC was trading at $26,911, up 4.12%, in the last 24 hours, according to Benzinga Pro.

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