Crypto-friendly Congressman Tom Emmer has criticized United States Securities and Exchange Commission (SEC) chair Gary Gensler .
Congressman Emmer does not like Genslers approach to cryptocurrency regulation, calling him a “bad faith regulator” during an April 7 appearance on the Unchained podcast hosted by author and crypto journalist Laura Shin.
Emmer questioned Gensler’s oversight on the crypto sector, claiming that he had been blindly enforcing regulations while failing to target the true bad actors.
Emmer cited the example of Coinbase, which had actively sought to work with the SEC to get compliance feedback on staking products, among other things, before being slapped with a Wells notice in March.
He accused Gensler of having an “enter-at-your-own-risk-door” policy, claiming that despite several meetings, the SEC had refused to provide feedback and had instead issued a notice regarding the very issues on which Coinbase had sought input.
Gensler has repeatedly emphasized that the SEC has an open-door policy and has called on crypto firms to register with the SEC to maintain compliance with securities law.
He believes that nearly all crypto assets apart from Bitcoin are classified as securities and should, therefore, be principally regulated by the SEC. However, Coinbase CEO Brian Armstrong has highlighted the difficulty of dealing with the SEC several times, and former Kraken CEO Jesse Powell has echoed similar sentiments.
The crypto community has criticized the SEC’s apparent anti-crypto-focused “regulation by enforcement” approach, and Emmer stated that this was not the way the government should be serving Americans.
He claimed that Gensler was not regulating in good faith, sending a clear message to the broader crypto community.
Emmer’s comments reflect the ongoing tension between regulators and the crypto industry. While some regulators, such as Gensler, believe that increased regulation is necessary to protect investors and prevent illicit activity, others argue that excessive regulation could stifle innovation and harm the industry’s growth.
In recent months, there has been a significant pushback against regulatory measures proposed by various agencies, including the SEC and the Financial Crimes Enforcement Network (FinCEN). Crypto companies have criticized the proposed rules for being too broad and imposing onerous compliance requirements.
The regulatory landscape is still evolving, and it remains to be seen how regulators will balance the need to protect investors and prevent illicit activity with the need to foster innovation and support the growth of the crypto industry.
However, one thing is clear: the crypto industry is not going down without a fight, and regulators will need to be responsive to their concerns if they hope to achieve their regulatory goals.
Tom Emmer Goes After SEC Gensler
In conclusion, the criticism from Congressman Emmer highlights the ongoing tension between regulators and the crypto industry, with the industry pushing back against proposed regulatory measures.
While regulators aim to protect investors and prevent illicit activity, the industry argues that excessive regulation could harm innovation and growth. The regulatory landscape is still evolving, and regulators will need to be responsive to the concerns of the crypto industry to achieve their regulatory goals.