Lawyers for Cynthia Lummis recently filed an amicus brief to support Coinbase in its appeal against the SEC. They argue that the commission is overstepping its authority.

Senator Lummis, a vocal supporter of the digital asset industry, has been clear about her stance. In her brief, she claims that the SEC is misinterpreting its role in enforcing cryptocurrency regulations.

On January 24, she submitted her arguments to the U.S. Court of Appeals for the Second Circuit. Lummis stated that the SEC's approach to crypto enforcement is flawed. She believes that old securities laws do not always fit modern assets like cryptocurrencies. This calls for lawmakers to create a new framework for digital assets.

“With lawsuits pending across the country that rely on the SEC’s overzealous interpretation of the securities laws, it is vital that the Second Circuit weigh in now,” she wrote. “A standard regarding when digital assets qualify as securities is urgently needed.”

The outcome of this appeal could significantly impact the SEC's case against Coinbase in the Southern District of New York. On January 7, Judge Katherine Failla decided to pause the SEC's case until the appellate court rules on Coinbase’s request for judgment.

The heart of the SEC's case revolves around how securities laws apply to certain cryptocurrencies and activities at digital asset firms. Lummis criticized the SEC for its new interpretation of the law, arguing that Congress never intended to give the commission such broad powers.

If the appellate court reverses the lower court's decision, it could change how the SEC handles other ongoing enforcement actions against crypto exchanges, like Ripple Labs and Binance. Former SEC Chair Gary Gensler, who many believe initiated these lawsuits, resigned on January 20. However, the commission's cases continue to move through the courts.

President Donald Trump has nominated former SEC Commissioner Paul Atkins to fill Gensler’s remaining term, which ends in June 2026. Meanwhile, Commissioner Mark Uyeda is serving as acting chair until the Senate reviews Atkins’ nomination.

After Republicans took control of the U.S. Senate on January 3, they appointed Lummis to chair the subcommittee on digital assets. In the House, Wisconsin Representative Bryan Steil will lead the subcommittee on crypto, fintech, and AI under the Financial Services Committee.