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The SEC Is Cracking Down on Crypto Companies Outside Its Jurisdiction

Congressman Tom Emmer has raised concerns over the operations of the U.S. Securities and Exchange Commission (SEC), stating that the regulatory body has been cracking down on companies outside its jurisdiction.

SEC Has Been Stepping Outside Its Jurisdiction 

Congressman Tom Emmer, who in March sent a bipartisan letter to SEC Chairperson Gary Gensler, seeking clarity on the SEC’s information-seeking process, has once again questioned how the body is being run.

In a dialogue between Emmer and the directors of the SEC, he opined that the SEC has blamed the eroding lack of trust Americans have in the country’s financial system on “industry participants and companies.”

However, the Republican senator has accused the regulator of stepping out of its jurisdiction to prosecute cryptocurrency-based companies, further asserting that the SEC has done so at the expense of public resources. 

The SEC Has Become Power Hungry 

The SEC’s Enforcement Director confirmed Emmer’s application for “extra-judicial requests.” Senator Emmer also accused the agency of dissolving the division assiged to crafting crypto regulations. 

Emmer declared that the regulatory agency has focused its energies on expanding its crypto enforcement division through using “enforcement to unconstitutionally expand its jurisdiction.” 

The congressman wrote on Twitter that, under SEC chief Gary Gensler, the regulatory agency has become more power hungry. The tweet was as follows:

On the Flipside

  • The SEC has filed an application to the court, requesting the revocation of the ‘amici curiae‘ status granted to XRP holders.

Why You Should Care

The motion to reduce the jurisdictions of the SEC could reduce the regulatory body’s interference in matters of cryptocurrency.

Find out about the general view Republicans hold on Crypto:

U.S. Congressional Republicans Seem Keen on Crypto

Check out the latest on the SEC Vs. Ripple case:

Lawsuit Swings in Ripple’s Favor as Judge Denies the SEC’s Attorney-Client Privilege Claims

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

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Author

Milko Trajcevski has been in the crypto world for years, and as such has gathered both a skill for writing as well as a native prowess when it comes to understanding everything that occurs within that world. Through skilled writing and determination, he covers articles about cryptocurrency, tokens, blockchain, crypto-asset regulations, crypto wallets, exchanges, liquidity, DApps, forks, mining, security, and blockchain technologies. He is a professional with a track record of proven expertise within the crypto space.