U.S. Senator Cynthia Lummis expressed her belief that the resignation of Securities and Exchange Commission (SEC) Chair Gary Gensler will benefit the digital asset industry and support financial innovation in the United States. Lummis shared her views in a post on X dated November 21.

"Gary Gensler's anti-digital asset reign at the SEC will officially end in January," said Lummis. "This is welcome news for the digital asset industry. I'm hopeful the next SEC Chair will follow the law and not try to stand in the way of financial innovation."

According to a press release, SEC Chair Gary Gensler announced on November 21 that he will resign from his position, effective January 20, 2025. "I thank President Biden for entrusting me with this incredible responsibility," Gensler said. "The SEC has met our mission and enforced the law without fear or favor."

During his tenure, Gensler maintained that while bitcoin is a commodity, "everything else other than bitcoin is a security," as reported by CryptoSlate. If digital assets are classified as securities—defined as an investment contract with profit expectations from others' efforts—the SEC would have regulatory authority over these assets and oversight of cryptocurrency exchanges.

Following a ruling by the Southern District of New York against the SEC last year in a case involving Ripple's alleged unregistered securities sales through its token XRP, Lummis remarked, "I applaud the decision of the Southern District of New York finding that crypto assets traded in secondary markets may not be investment contracts...The decision confirms the need for Congress to deliver a clear regulatory structure for the crypto asset industry that provides the highest level of consumer protection."

After lawsuits were filed by the SEC against cryptocurrency exchanges Coinbase and Binance with similar accusations last year, Lummis commented, "The SEC has failed to provide a path for digital asset exchanges to register, and even worse has failed to provide adequate legal guidance on what differentiates a security from a commodity. The SEC's continued reliance on regulation by enforcement continues to harm consumers. Real consumer protection requires creating a robust legal framework that exchanges can comply with, not pushing the industry offshore or into the shadows."

Lummis served as Wyoming State Treasurer for eight years before being elected to the U.S. House in 2008. In 2021, she became the first female U.S. senator from Wyoming.