Crypto-Friendly Rep. Tom Emmer Slams SEC Chair Gensler
Rep. Tom Emmer criticized Securities and Exchange Commission Chair Gary Gensler for being “as ineffective as he is incompetent” and introduced an amendment to “rein in enforcement abuses” against the crypto industry.
Emmer leads the Congressional Blockchain Caucus, which supports crypto and prefers a light-touch regulatory approach. He withdrew from the House Speaker race shortly after winning the nomination last month.
The nonpartisan amendment passed the House without opposition and aims to prevent the SEC from using funds for crypto enforcement until Congress defines its regulatory scope.
Emmer’s initiative reflects a growing concern over the SEC’s current “regulation by enforcement” approach, which has been criticized for stifling innovation and forcing companies to seek friendlier shores.
During a session of Congress, Emmer said, “Regulation by enforcement is a practice all too common with this administration, particularly at the SEC. My amendment seeks to put an end to Chair Gensler’s pattern of regulatory abuse.” He added that his amendment prohibits the SEC from using funds for enforcement activities related to digital asset transactions until Congress passes legislation that gives the SEC jurisdiction over this asset class.
Going After Kim Kardashian and Coinbase, Missing SBF and FTX
The Congressman pointed out aggressive SEC actions against crypto entities like Coinbase without providing clear regulatory guidelines — something he argues harms American competitiveness in the digital asset arena. He also criticized Gensler for not targeting bad actors like FTX and Terra/Luna.
Gensler told CNBC at DC Fintech Week that a rebooted FTX run by ex-NYSE chief Tom Farley would be possible if done “within the law.”
Emmer emphasized that clear guidance is needed for the industry. He added that Congress is working on legislation to establish a framework for how specific digital assets are classified, as either securities or commodities, which will dictate regulator jurisdiction.
‘Congress Will Hold Unelected Bureaucrats Accountable’
Emmer highlighted several instances where he believed the SEC operated outside its jurisdiction. He argued that other government agencies have sufficient authority to prosecute criminal acts in the crypto space more effectively than Chair Gensler and the SEC.
He said, “This amendment is designed to send an important signal – not just to the SEC but to every regulatory entity in the federal government – Congress will hold unelected bureaucrats accountable.”
The amendment will now be sent to the Senate for consideration. The Senate can agree to the House amendment, propose its own amendments, or pass a different version.
Hot Take: Emmer’s Stand Against Gensler’s Regulatory Approach
In conclusion, Rep. Tom Emmer’s efforts reflect growing concerns over regulatory abuses within the crypto industry under Chair Gensler’s leadership at the SEC. His proposed amendment sends a strong message about holding unelected regulators accountable and ensuring clear guidelines are established for regulatory oversight of digital assets.
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