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- 1 U.S. Representative Tom Emmer called out the SEC and Gary Gensler’s actions on crypto “abuse of power.”
- 2 Emmer proposed to restrict the finances of the regulatory agency until it comes up with clear crypto regulations.
The Securities and Exchange Commission (SEC) has been ramping up regulatory enforcement actions against the broader crypto industry. Due to these actions, the agency has to face backlash not only within the industry but also from lawmakers. Congressman Tom Emmer reportedly plans to control the financial allocation of the regulator citing abuse of power.
U.S. Representative, who’s also Majority Whip of the U.S. House of Representatives, calls for sponsoring amendment for the SEC. Emmer intends to refrain the financial regulator from using the funds to take enforcement actions on digital assets and companies.
Emmer called out the actions of existing SEC chair Gary Gensler and alleged him to be operating beyond his authority and the agency’s jurisdiction. This, as a result, has a negative impact on American citizens.
“Gary Gensler has abused his authority to grow the Administrative State to the detriment of the American people,” he added.
In addition, the Congressman asked Congress for a process using the available tools in order to prevent Gensler and SEC from misusing the taxpayer’s money. He said to take steps in the direction of stopping the SEC chair from using the American people’s money as a weapon.
One such tool that Emmer was speaking about was the Financial Services and General Government. The recent amendment to watch over the funding is said to be added to the bill related to the SEC’s funding.
The U.S. representative clarified the intentions that he wants the restrictions to stay on the SEC and its Chair until comprehensive and well-defined rules and regulations are established. If this proposal is successful, it would limit the commission’s authority and actions until the desired regulatory clarity is achieved.
Emmer Belongs to Crypto-favoring Lawmakers
Emmer aligns himself with the pro-crypto faction among Republicans, sharing common ground with SEC commissioner Hester Pierce, known as “Crypto Mom.” On the Democratic side, Congressman Ritchie Torres has also expressed concerns, urging SEC Chair Gensler to adhere to the recent court ruling by Judge Analisa Torres following Ripple’s partial legal win, highlighting the ongoing crypto-related discussions in the political arena.
Former SEC commissioner John Reed Stark has pointed out that a potential shift in leadership, with a Republican president assuming office following the 2024 elections, could have positive implications for the cryptocurrency space. This suggests that changes in political leadership may influence the regulatory environment for crypto in the future.
Prominent figures within the blockchain industry such as Blockchain Association CEO Kristin Smith and Crypto Council CEO Sheila Warren have voiced their support for the proposed legislation. Additionally, Congressman Emmer has endorsed Representative Warren Davidson’s SEC Stabilization Act, a bill aiming to remove Gary Gensler from his role as SEC chair. These actions reflect a growing chorus of support and opposition within the crypto sector regarding regulatory matters.
With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.
