Wyoming Senator Cynthia Lummis Predicts SEC Chair Gary Gensler May Step Down Next Year
During an appearance on CNBC’s Squawk Box on Sept. 27, Wyoming Senator Cynthia Lummis shared her belief that SEC Chair Gary Gensler is likely to step down from his role as the regulator’s head next year. This prediction comes in response to the hosts’ comments that Gensler “loves the job” and does not want to leave it. Lummis stated:
“I don’t believe that’s going to happen, especially if Donald Trump is elected president.”
She also mentioned that she cannot confirm whether this prediction would hold true if Vice President Kamala Harris is elected instead.
Lummis went on to express her opinion that Gensler does not adequately recognize Bitcoin (BTC) and Ethereum (ETH) as commodities. While she did not explicitly name other cryptocurrencies, she hinted that there may be additional assets that qualify as commodities under the jurisdiction of the Commodity Futures Trading Commission:
“We need to have a clear definition. The Howey Test is available to us, and as it has been updated, there are maybe other assets just besides Bitcoin and Ethereum that would qualify for the jurisdiction of the Commodity Futures Trading Commission.”
It is worth noting that Gensler recently reiterated the SEC’s view that Bitcoin is considered a commodity. However, during a Congress hearing on Sept. 24, he did not comment on Ethereum’s regulatory status.
Congressional Regulation of Cryptocurrency in the US
Lummis emphasized the importance of regulating cryptocurrency in the US to provide clarity for companies operating in the industry. She pointed out that the EU has been effectively regulating its local market since 2023 and stressed that the US should not allow other countries to surpass it in financial services.
Responding to Gensler’s recent statements about the need for regulatory clarity to support the growth of the crypto industry in the US, Lummis agreed and asserted that Congress must take action to regulate cryptocurrency in the country. She remarked:
“Some of the problem has been that the SEC has said ‘we have all the tools we need to regulate,’ but the way they applied them has brought court cases instead of regulating by making clear rules. They are regulating by enforcement action.”
Lummis also argued that industry participants struggle to understand what is considered wrong when the SEC relies solely on enforcement actions for regulation.
In conclusion, Lummis emphasized the importance for regulators to distinguish between fraudulent activities and legitimate cryptocurrency assets:
“You can commit fraud with yachts, with art, with coins, with minerals. It is not the asset itself that is fraudulent.”