Wyoming Senator Cynthia Lummis believes that SEC Chair Gary Gensler is likely to step down from his role as the regulator’s head next year.

She made the statement during CNBC’s Squawk Box on Sept. 27 in response to the hosts saying that he “loves the job” and does not want to leave it. She added:

“I don’t believe that’s going to happen, especially if Donald Trump is elected president.”

However, she also said that she can’t confirm whether this would also be the case if Vice President Kamala Harris is elected.

Additionally, Lummis said that Gensler doesn’t “recognize adequately” that Bitcoin (BTC) and Ethereum (ETH) are commodities. Lummis further said that other crypto might be commodities without naming them:

“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.”

Notably, Gensler reiterated during his participation on Squawk Box on Sept. 26 that the SEC views Bitcoin as a commodity. However, during a Sept. 24 Congress hearing, the SEC Chairman did not comment on Ethereum’s status.

Congress must regulate crypto in the US

Lummis also addressed the necessity of regulating crypto in the US to give clarity to companies. She stated that the EU has been regulating the local market “very effectively” since 2023, and the US should never let other countries get ahead in financial services.

The hosts also brought up Gensler’s recent remarks on the necessity of clarity to foster crypto industry growth in the US. Lummis agreed with the sentiment, stating that Congress needs to regulate crypto in the country.

She added:

“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 further argued that industry players don’t understand what is wrong when the SEC regulates only by applying penalties,

Concluding her remarks on crypto regulation, Lummis highlighted that regulators should not mistake fraudsters for crypto.

“You can commit fraud with yachts, with art, with coins, with minerals. It is not the asset itself that is fraudulent.”

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