A US Congressman has reprimanded the Securities and Exchange Commission (SEC) and Chairman Gary Gensler for cracking down on companies outside the SEC’s jurisdiction. The SEC is “not regulating in good faith,” he said, adding that “under Chair Gensler, the SEC has become a power-hungry regulator.”
Rep Emmer slams SEC and Chair Gensler
Gurbir Grewal, director of enforcement at the US Securities and Exchange Commission (SEC), testified Tuesday before the Investor Protection, Entrepreneurship and Capital Markets subcommittee of the US House of Representatives’ Financial Services Committee.
During the hearing, US Congressman Tom Emmer (R-MN) said that Grewal repeatedly blamed “almost entirely the erosion of trust on the shoulders of industry participants and companies.”
The Congressman said: “The SEC here is by no means innocent. Chair Gensler’s political system in the SEC, which is run by her enforcement department, is being eroded at the cost of public resources, public investment in our country, and public trust in our markets.” Characterized by a focus on using enforcement to expand SEC jurisdiction. He continued:
It seems clear to everyone except perhaps the members of the commission that the SEC is not regulating in good faith.
“While many sectors of the industry have struggled with the SEC’s politicization of regulation over the past 14 months, this is most clearly seen when it comes to the digital asset industry,” he emphasized.
Emmer tweeted after the hearing on Tuesday:
The SEC’s director of enforcement acknowledged that the SEC is cracking down on companies outside of its jurisdiction. Absolutely unacceptable.
The Minnesota congressman emphasized in another tweet:
Under Chair Gensler, the SEC has become a power-hungry regulator that politicizes enforcement, prompts companies to ‘come and talk’ to the commission, then kills them with enforcement actions, discouraging goodwill cooperation. does.
In an interview with Bloomberg on Tuesday, Chair Gensler explained that “there are a lot of non-compliances” in the crypto space.
The SEC chief noted that there are “far too many” of these trading and lending platforms that have to comply with the laws and be registered. Last week, Gensler explained what investors can expect from the SEC on the crypto regulatory front.
What do you think of US Congressman Tom Emmer’s comments about the way the SEC and Chair Gensler regulated the crypto sector? Let us know in the comments section below.
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