US Senator blasts SEC for extrajudicial action against crypto companies
Tom Emmer, the Republican Senator from Minnesota, is the latest politician to denounce the United States Securities and Exchange Commission (SEC) for its unethical actions against crypto companies.
Emmer posted a video Tuesday showing his conversation at the House Committee on Financial Services, where he accused the SEC of politicizing regulations. He went on to question SEC Enforcement Director Gurbir Grewal about the SEC’s unethical “industry sweeps” against crypto companies.
The SEC Director of Enforcement admits that the SEC cracks down on companies outside of its jurisdiction. Absolutely unacceptable. pic.twitter.com/wRQU54Ov6v
— Tom Emmer (@RepTomEmmer) July 19, 2022
The senator further inquired whether these sweeps against crypto companies fall under the jurisdiction of the SEC and what action the commission takes against companies that do not voluntarily submit to such a voluntary survey. Grewal admitted to taking enforcement action against companies outside of their jurisdiction. Emmer said the SEC is using its Enforcement Branch to unconstitutionally expand its crypto jurisdiction.
Emmer also accused SEC Chairman Garry Gensler of luring and threatening companies, saying:
“Under Chairman Gensler, the SEC has become a power-hungry regulator that politicizes enforcement, entices companies to ‘come in and talk’ with the commission, then hits them with enforcement action and discourages them from working in good faith.”
Emmer said the SEC’s behavior is totally unacceptable and believes the regulator does not regulate in good faith, particularly when it comes to the digital asset market.
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Brad Sherman, the congressman who previously called for the US to ban cryptocurrencies, also blamed the SEC for its enforcement approach against major crypto exchanges. Sherman accused the SEC enforcement department of tracking Ripple (XRP) as collateral but not the crypto exchanges that processed “tens of thousands” of transactions of the token.
Many in the crypto industry hoped that the appointment of Gary Gensler as SEC chief would prove beneficial for crypto regulation given his crypto/blockchain background. On the contrary, Gensler’s approach was quite opaque and unethical.