Congressman pushes for limits on SEC crypto enforcement funds

September 9, 2023 at 7:34 pm

Edited by Anthony Patrick

News

Minnesota Congressman Tom Emmer plans to present a budgetary amendment to limit the U.S. Securities and Exchange Commission (SEC) from utilizing its crypto regulations budget.

Emmer, a Republican who holds the role of Majority Whip in the U.S. House of Representatives, is gearing up to sponsor a significant appropriations amendment bill, citing worries of excessive authority exerted by SEC chair Gary Gensler.

This amendment seeks to limit the SEC’s ability to allocate taxpayer funds for digital asset enforcement efforts.

Gensler’s actions negatively impact Americans’ ability to explore the potential of Bitcoin (BTC) and other cryptocurrencies, Emmer argued in a social media post. Congress, he says, must employ proper procedures to prevent any potential misuse of taxpayer funds by the SEC.

.@GaryGensler has abused his authority to grow the Administrative State to the detriment of the American people. Congress must use all our tools, including the appropriations process, to restrict Chair Gensler from further weaponizing taxpayer dollars.
— Tom Emmer (@GOPMajorityWhip) September 8, 2023

Gensler expresses concerns about crypto

While crypto enthusiasts may disagree with his approach to regulation, Gensler continues to voice his apprehensions about the cryptocurrency market.

During a recent interview, Gensler emphasized the prevalent problems of deceptive activities and a lack of adherence to regulations in the crypto space. These worries arise following a notable legal judgment regarding whether XRP should be classified as a security, a decision that contradicted the SEC’s previous position.

Former SEC Chair advocates for Bitcoin ETFs

Former SEC Chairman Jay Clayton, who held the position from May 2017 to December 2020, now asserts that Bitcoin ETFs deserve approval. In a CNBC interview, Clayton acknowledged the remarkable progress made by the cryptocurrency industry, particularly in terms of institutional investment.

He praised the increasing acceptance of Bitcoin by major market players and emphasized the growing trust in the sector’s regulatory safeguards.

Gensler’s crypto regulation challenges

The debate over the SEC’s handling of crypto regulation reached a critical point when Louisiana Republican Senator John Kennedy questioned Gensler’s authority and the SEC’s competence in tackling crypto fraud during a Senate Committee hearing on July 19. This confrontation focused on FTX, a prominent crypto exchange founded by Sam Bankman-Fried.

Gensler’s journey through the crypto landscape has been marked by shifting stances, confrontations with industry leaders, and swirling rumors. His evolution from initially supportive positions to a more hard-line approach provides a unique perspective on his tenure as head of the SEC.

U.S. Congressman Warren Davidson has renewed his calls for the removal of Gensler following a court ruling in favor of Grayscale. Davidson argues that this ruling further underscores the claim that Gensler’s actions at the SEC lack consistency and appear arbitrary.

This recent legal defeat marks the second setback for Gensler and his team, with the previous ruling favoring Ripple in a lawsuit initiated by the SEC.