SEC’s Gensler Under Fire as Emmer Launches Crypto Defense

Congressman Tom Emmer accuses Gensler’s SEC of abandoning its core mandate, unveiling proposals to reform the agency.

Gary Gensler surrounded by flames with an angry Tom Emmer in the background.
Created by Gabor Kovacs from DailyCoin
  • The U.S. crypto industry faces hostility under Gensler’s SEC.
  • Congressman Tom Emmer supported proposals to reform the agency.
  • Crypto regulation is a divisive issue.

The Securities Exchange Commission (SEC) under Gary Gensler has left little doubt about its intent to exercise control the U.S. crypto industry. The latest anti-crypto actions perpetrated by the agency include sending Robinhood a Wells Notice and objecting to Ripple’s stablecoin plans

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Stepping in to bring the SEC to account, Congressman Tom Emmer has lent his support to a trio of bills aimed at reforming the SEC, stating the agency has wandered far off its path.

SEC and Gensler Panned

Wading into the “war on crypto,” Emmer blasted the SEC under Gensler for straying from its core mission, announcing his co-sponsorship of three legislative proposals to bring reform and oversight to the agency. The bills, authored by Congresswoman Ann Wagner, aim to rein in the SEC’s overreach and lack of accountability.

In unveiling the bills, Emmer accused the agency of abandoning its “statutory mission to protect investors, maintain fair, orderly, and efficient markets, and facilitate capital formation.” He insisted the reforms, if passed, would “force the SEC to get back on track” with its mandates.

While some believe the solution for SEC hostility lies in “regulating the regulators,” the broader issue of crypto oversight remains a major partisan flashpoint in Congress.

Crypto Remains Divisive

Crypto regulation remains a hugely divisive, partisan issue on Capitol Hill, making legislative proposals to reform the SEC’s oversight a highly contentious issue. Although presidential hopeful Donald Trump lent his support to the U.S. crypto industry recently, there are many Republicans, including Senator Mike Rounds, who strongly oppose digital assets, as well as supportive Democrats.

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Nonetheless, Joe Biden’s veto of the recently passed H.J. Res. 109, which repealed an SEC policy preventing regulated entities from custodying crypto assets, demonstrated where the White House stands with cryptocurrency.

With presidential backing under the current administration, the odds of SEC reform remain uncertain.  

On the Flipside

  • Coinbase CEO Brian Armstrong believes the path to correcting regulatory hostility lies in supporting pro-crypto politicians.
  • The feedback to Emmer‘s message was mixed, with some replies accusing the congressman of having vested interests.

Why This Matters

Emmer is attempting to hold Gensler and the SEC accountable for overstepping its mandate at the expense of an emerging industry. Whether there is the political will to make this happen is another matter.

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This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Author
Samuel Wan

Samuel Wan is a finance professional turned crypto journalist, known for his insightful reporting on market trends, regulatory changes, and technological developments within the digital asset industry. His ability to simplify complex concepts and report the facts has made him a trusted source in the crypto community. Beyond his writing, Samuel is an active mountain biker and gamer.