The US regulatory agencies have been under constant questioning following the collapse of FTX and other major exchanges this year. The lawmakers have been highly concerned regarding the investors’ interest and protection.
Recently, Tom Emmer, Senator from Minnesota, has criticized Gary Gensler, Chairman of the United States Securities and Exchange Commission (SEC), for his regulatory approach towards crypto. He accused the chairman of his flawed “crypto information-gathering efforts.” He insisted that he should appear before Congress representing the regulator to explain the cost of their “regulatory failures.”
Emmer’s recent comment was shared on Twitter, where he has over 67,500 followers. He stated that:
“He (Gensler) declined to provide Congress with the information requested in the letter, which would’ve informed Congress of the apparent inconsistencies in Gensler’s approach that caused him to miss Terra/Luna, Celsius, Voyager, and FTX.”
The senator called Gensler’s approach of “crypto information-gathering” efforts “ineffective”, citing the Terra ecosystem’s collapse and the bankruptcy of various crypto platforms like Celsius, Voyage, and FTX.
Further, the senator calls for Gensler to testify before Congress and take accountability for his regulatory failures. He added that the chairman hasn’t appeared before the House Committee on Financial Services since October 5, 2021. This leaves crypto media to fill the gaps for the SEC’s investigative failures.
The comment chain also mentioned a bipartisan blockchain caucus letter from March. On March 16, the Congressman disclosed receiving inquiries from multiple blockchain and cryptocurrency companies that thought Gensler’s reporting requirements were restrictive and stifled innovation.
He mentioned that the writers of the blockchain caucus letter from March stated that the SEC’s efforts in sourcing information from crypto firms were not to be “targeted, intentional, or clear” but instead found it to be “haphazard and unfocused.” He said that Gensler responded late to the accusations, around two months. He accused the explanations of having ignored several questions regarding the agency’s approach and plans to oversee the digital assets industry.
According to him, Gensler tried explaining to Congress the roles of the SEC’s enforcement and examination divisions to dodge the question.
Emmer has frequently criticized the SEC chief for his approach toward crypto regulation. On November 26, Todayq News reported that he said that Congress shouldn’t derive its opinions of SEC’s regulation through the planted stories in progressive publications.
On November 23, he shared on Twitter that Gensler’s lack of leadership was responsible for the FTX fiasco in November.
Lawmakers and regulators, including the SEC, have spent significant time and attention to confirm if cryptocurrencies comply with the definition of the Howey Test to fall under US securities laws. Various lawmakers and regulators, including Senator Lummis, have recently admitted Bitcoin as a commodity while rest to be a security.
Emmer has advocated crypto as a financial asset since 2020 and opines that the government should clear the way to ensure that it doesn’t hinder innovation in the crypto sector.