By Michael Scott
Representative Minnesota Tom Emmer has hit out at the Securities and Exchange Commission (SEC) enforcement actions, with the chair Gary Gensler labelled ineffective and incompetent.
The Minnesota Representative Emmer criticized the Biden Administration and SEC’s chair during the Wednesday, November 8, Congress session. Emmer reiterated that the US Congress would hold all the bureaucrats accountable.
Congress Ammendment Seek Reignin Abuse of SEC’s Enforcements
The Representative’s statement came after the House approved the appropriation amendment targeted at reigning the abuse of SEC enforcement imposed against the cryptocurrency industry.
Emmmer’s sentiment came hours after Gensler addressed the annual DC Fintech Week Conference. The SEC’s chair indicated that the parties that secured the remnant of the collapsed crypto exchange FTX could revive the brand guided by US federal law.
Emmer tore into the Gensler and SEC conduct in 700 words of critical commentary. The Representative lamented the regulation by enforcement became the common practice deployed by the Biden Administration. Such was the approach portrayed by SEC and Chair Gensler towards the US capital markets, financial services sector and emerging crypto community.
Emmer explained the amendment tabled before Congress as one aimed at ending the regulatory abuse pattern preferred by Gensler. The Minessota Representative regretted that the pattern was crushing American crypto talent, innovation and capital formation.
Emmer amendment limits the US SEC’s capability to allocate and utilize funds to realize enforcements involving digital assets transactions. The proposal prohibits the SEC until the enactment of legislation conferring jurisdiction over crypto assets.
Emmer recounted the dozens of enforcements implemented against the crypto industry. The Representative wondered about the energy portrayed towards enforcement while the regulator has failed to finalize even a single crypto-specific regulation.
Emmer alleged that Chair Gensler denies offering clear criteria for the crypto assets stakeholders. Instead, the chair restates the Howey test to conclude the tokens are unregistered securities.
Emmer opined that the SEC lacks jurisdiction from Congress over crypto assets. The US politician lamented that the SEC had in the past attempted to expand the authority to swallow and destroy the crypto assets industry via enforcement.
Emmer wondered about the priorities of the SEC’s chair, who, rather than offer clear guidance, resorted to spending taxpayer resources for praise in nabbing celebrities such as Kim Kardashian. Emmer wondered about the effectiveness of SEC’s oversight, considering the embattled Sam Bankman-Fried ran a Ponzi-like scheme in the crypto exchange FTX till its sudden collapse in November 2022.
Emmer indicated that the amendment would warn the regulatory agencies that Congress attempts to hold unelected bureaucrats accountable. The amendments will impose checks against Chair Gensler, who in the past proved ineffective and incompetent in nurturing growth in the crypto assets industry.
Instead, the US is losing talent and innovation to Hong Kong, Europe and Singapore, where several regions aspire to become global digital assets hubs.
SEC’s Chair Urges Legal-Compliant FTX Revival
Emmer condemned Gensler coincidentaly when the SEC chair addressed the annual DC financial industry conference. Gensler indicated in a sideline conversation with CNBC’s MacKenzie Sigalos that the regulator would approve bringing FTX back to life under the stewardship of former New York Stock Exchange (NYSE) president Tom Farley.
Crypto exchange Bullish, led by Farley, joins other bidders to acquire the bankrupt FTX assets identified in a Wednesday, November 8 publication by the Washington Post as Proof Group and Figure Technologies.
Gensler advises the would-be new owners of former Bankman-Fried’s FTX brand to nurture trust with the investors by ensuring proper disclosures. He emphasized the need to avoid commingling functions, mainly trading against clients and rerouting their crypto assets for their pursuits.
Gensler lamented the continual non-compliance demonstrated by the cryptocurrency industry players. He attributed the non-compliance trend as the source of the multiple challenges.
Gensler Accused of Failing to Exercise Authority to Avert FTX Collapse
Various critics have targeted Gensler’s conduct, alleging failure to reign in FTX shortcomings and fraudulent behaviour by founder Sam Bankman-Fried. In a December commentary, New York Representative Ritchie Torres alleged that Gensler portrayed soft-handed dealings with the embattled FTX co-founder. He accused the chair of bearing an input in failing to avert the FTX collapse, hence supporting the independent investigation into the SEC-FTX dealing.
Torress challenged Gensler’s declaration that the SEC has authority over the crypto assets. He wondered why the chair failed to uncover the crypto ponzi scheme orchestrated by Bankman-Fried. The New York Representative indicated that one cannot claim to assert authority while simultaneously avoiding accountability.