- Senator Cynthia Lummis challenges the DOJ’s overreach by opposing their classification of non-custodial software as a money transmission business.
- The recent discovery that XRP is not a security had an impact on Lummis, who is in favor of open cryptocurrency laws.
Senator Cynthia Lummis has expressed her displeasure with the US government’s tough approach to the Bitcoin business in public. Lummis has continuously supported the rights of businesses and individuals working in cryptocurrency against what she views as overreaching state activities.
Lummis is a fervent advocate of Bitcoin and its fundamental ideas. Her main point of issue is with the Department of Justice’s (DOJ) recent interpretation, which goes against current Treasury rules and common sense by classifying non-custodial software as prospective money transportation services.
I am deeply concerned by the Biden administration criminalizing core tenants of the Bitcoin network and decentralized finance.
My full statement. ⬇️ pic.twitter.com/M3CHcNTi3x
— Senator Cynthia Lummis (@SenLummis) May 1, 2024
Protecting Essential Rights
Senator Lummis contends that fundamental property rights, which she views as essential to American ideals, are in danger under the existing regulatory framework.
She has stated that she will stop at nothing to make sure that Americans are able to control their cryptocurrency holdings, including keeping their own keys and running their nodes independently of outside intervention.
Her stance against the Biden administration’s policies, which she claims criminalize the fundamental functions of the Bitcoin network and decentralized finance (DeFi) systems, was a resounding demonstration of her dedication to this cause.
Senator Lummis has continued to criticize the DOJ and the Securities and Exchange Commission (SEC) for their aggressive regulatory strategies in 2023.
She actively opposed the SEC’s contentious new crypto policy, “Staff Accounting Bulletin 121,” which went into effect in March 2022, and she backed legal action against the policies.
Lummis claims that the SEC’s regulatory actions constitute an abuse of power and a trespass into Congress’s legislative territory.
Senator Lummis Struggling for Regulation Clarity
Senator Lummis has advocated for the creation of lucid, rational regulatory frameworks to address regulatory obstacles. The decision that XRP should not be categorized as a security was made by Judge Analisa Torres, who supported this call.
Lummis draws attention to the Howey Test, a legal standard for classifying securities, and stresses the importance of applying it cautiously to digital assets in order to preserve market integrity.
The Lummis-Gillibrand bill was introduced by Senators Lummis and Kirsten Gillibrand in an effort to make the regulatory environment more clear. By bringing digital assets like XRP into compliance with accepted legal interpretations, this law seeks to establish clear regulatory parameters.
On the other hand, other nations are likewise tightening their regulatory frameworks for cryptocurrency on a global scale.
Notably, a global trend toward stricter cryptocurrency rules is evident in China’s 2025 revision of its anti-money laundering legislation to encompass cryptocurrency transactions, as formerly reported by ETHNews.