The SEC seeks to regulate the industry by categorizing cryptocurrencies as securities, per Sen Tom Emmer.
Senator Tom Emmer claims that the U.S. Securities and Exchange Commission (SEC) is still actively pursuing cryptocurrency and has gone beyond its authority.
Tom Emmer, a Republican senator, has questioned the public’s confidence in the American financial system. The SEC, he continued, has placed the blame for this decline in trust on “industry participants and companies.”
He charged the organization with utilizing enforcement to enlarge its purview at the expense of public resources and confidence, particularly in the digital asset sector.
On July 19, Senator Emmer published a video of his conversation with executives from the financial regulator.
🚨The SEC Director of Enforcement admits the SEC is cracking down on companies outside its jurisdiction. Absolutely unacceptable. pic.twitter.com/wRQU54Ov6v
— Tom Emmer (@GOPMajorityWhip) July 19, 2022
Unrelenting SEC
Gurbir Grewal, the director of SEC enforcement, was questioned by Senator Emmer over “industry sweeps” after getting proof that they take place. Grewal refused to provide information when questioned about recent industry sweeps, citing SEC regulations.
The Enforcement Director also acknowledged making “extra judicial requests” of businesses that are not SEC-regulated.
In addition, Senator Emmer said that SEC Chair Gary Gensler had instructed the enforcement division to issue “sweep letters” to a specific segment of the cryptocurrency community in an effort to “jam them into a violation that is purportedly unlawful.”
According to the SEC, those who don’t comply with ostensibly voluntary information requests will experience a “bloodbath.” Senator Emmer then charged the organization with disbanding the division responsible for developing cryptocurrency rules.
He continued, “The SEC is hellbent on growing the size of its crypto enforcement section using enforcement to illegally broaden its jurisdiction.”
Under Chair Gensler, the SEC has transformed into a power-hungry regulator, politicizing enforcement, enticing businesses to “come in and chat” to the Commission before punishing them with enforcement proceedings and discouraging good-faith collaboration.
Lummis-Gillibrand Bill is Likely to Be Postponed
As recently reported by Cryptoannals, The aggressive Lummis-Gillibrand bill, a recent ray of hope, is not expected to be voted on this year. On July 19, Senator Lummis told Bloomberg that the legislation’s broad reach would make it challenging for lawmakers to absorb quickly. As a result, it is unlikely that the Senate will vote on it before the end of 2022.
Read more articles: Lummis-Gillibrand Bipartisan Crypto Law May be Postponed
The plan has received repeated criticism from Gary Gensler, who claims it poses a threat to the $100 trillion conventional finance sector. In order to regulate digital assets similarly to securities and stocks, he seeks the SEC to have exclusive jurisdiction over them.