US Senator Criticize the SEC on its Crypto Policies
- The SEC has been accused of overstepping its boundaries on crypto regulations and using unlawful tactics to hunt the industry.
The US Securities and Exchange Commission has come under fire for its alleged policy of targeting crypto firms, which many believe has become unethical. Republican senator, Tom Emmer, became the latest critic of this approach, noting that the SEC appeared to have politicized regulation.
Tom, a senator from Minnesota, expressed his opinion during a chat at the House Committee on Financial Services. The US senator later slammed SEC Enforcement Director Gurbir Grewal for a power-drunk approach to crypto firms. He criticized the present leadership of the commission over the unlawful expansion of its crypto jurisdiction.
Tom further questioned as to whether the SEC has any authority over these raids targeting cryptocurrency companies and what actions it takes against organizations that refuse to submit to such voluntary questioning. The SEC Enforcement Director, Grewal acknowledged taking enforcement measures against businesses outside of their authority. Responding to Grewal’s confession, Senator Tom claimed that SEC was expanding its crypto jurisdiction in an inappropriate manner.
In a tweet he shared on Twitter, Tom pointed fingers at the Gary Gensler-led commission, describing it as a power-hungry regulator. His tweet read,
Under Chair Gensler, the SEC has become a power-hungry regulator, politicizing enforcement, baiting companies to “come in and talk” to the Commission, then hitting them with enforcement actions, discouraging good-faith cooperation.
Tom like many crypto enthusiasts, believes that the SEC’s actions were wholly inappropriate and that the organization is not acting in good faith when it comes to the regulation of the market for digital assets in particular.
The SEC has been one body spearheading the regulation of the crypto industry. However, even strong critics of the crypto industry have become displeased over what looks like a witchhunt on the industry.
Brad Sherman, the congressman who earlier demanded that cryptocurrencies be outlawed in the United States, also criticized the SEC for their enforcement strategy against significant crypto exchanges. Brad believes the SEC exerts its full force on smaller crypto exchanges but goes soft in other situations.
The SEC and Crypto Regulation
Securities and Exchange Commission Chairman Gary Gensler was nominated by the Biden administration however, a few weeks into his time as chairman of the commission, Gary declared his interest to see the crypto industry come under stronger regulation, which he said would be beneficial to all. He said,
I think if [Congress were to take action] – because right now the exchanges trading in these crypto assets do not have a regulatory framework, either at the SEC, or our sister agency, the Commodity Futures Trading Commission – that could instill greater confidence. Right now there’s not a market regulator around these crypto exchanges, and thus there’s really no protection against fraud or manipulation.
Many believed that Gary would provide clarity on regulation but, it appears he is pushing for a sort of regulation the industry is not prepared for. The commission seem prepared for its fight against fraud in the crypto space and announced that it had expanded its cryptocurrency and cybersecurity unit by adding 20 positions.
The new roles will almost double the size of the unit, bringing the total number of members to 50. The new appointments include supervisors, staff lawyers, trial counsel, and fraud experts.