Sen. Cynthia Loomis of Wyoming has provided a brief supporting Coinbase’s request to have a lawsuit against it dismissed by the US Securities and Exchange Commission (SEC).

Sen. Cynthia Loomis of Wyoming has provided a brief supporting Coinbase\’s request to have a lawsuit against it dismissed by the US Securities and Exchange Commission (SEC).

Lummis, a Republican, reiterated her support for the crypto industry by offering a friend’s feed in solidarity with Coinbase.

The company wants a federal judge to dismiss a lawsuit brought against it by the Securities and Exchange Commission for allegedly operating as an unregistered exchange, broker, and clearinghouse.

Coinbase argues that the regulatory agency exceeded its mandate when it sued the exchange for the alleged crimes. In its motion to deny, Coinbase stated that transactions on its platform did not involve securities, which would place it outside the jurisdiction of the regulator.

Loomis, 68, says the SEC\’s approach to crypto enforcement runs counter to the separation of powers enshrined in the US Constitution. She says the agency is trying to legislate laws, which is a job of Congress.

Loomis also accused the SEC of trying to bypass the ongoing political processes aimed at crafting regulations for the digital currency industry by usurping the power reserved for other agencies.

It alleged that the agency had distorted the meaning of the phrase “investment contract” found in the Securities Act of 1934 to give itself regulatory authority over digital assets.

The lawmaker, who is also a member of the Senate Banking, Housing, and Urban Affairs Committee, insists that the SEC\’s interpretation of its role in regulating crypto has been “inconsistent” with several pending bills being considered by the committee.

In July, the senator introduced a bipartisan bill co-sponsored by New York lawmaker Kirsten Gillibrand to regulate the crypto space and strengthen consumer protections. Called the Responsible Financial Innovation Act (RFIA), the bill defines the roles of various agencies in regulating cryptocurrency.

RFIA gives the SEC authority over tokens issued in initial coin offerings (ICOs) since many of them meet the definition of investment contract transactions.

However, it considers that the underlying crypto assets are commodities and therefore should fall under the CFTC\’s purview.