Congress group calls SEC crypto enforcement into question

Eight members of Congress, from both sides of the house, have written a joint letter to the SEC (Securities and Exchange Commission) calling into question its authority and approach on crypto assets.

According to an article on the US political internet site “The American Prospect”, a bipartisan group of congressmen have sent a letter to the SEC demanding that Gary Gensler and his department explain their approach to information gathering and enforcement.

One of the eight, Rep. Emmer, the leading author of the letter, took to Twitter, citing “burdensome reporting requirements” as one of the reasons for weighing down crypto startups, stating:

“crypto startups must not be weighed down by extra-jurisdictional and burdensome reporting requirements. We will ensure our regulators do not kill American innovation and opportunities.”

The SEC, in response to the letter, may well use the argument that it is an independent organisation that conducts its own investigations, and that politicians are not supposed to try and influence them.

However, according to the American Prospect article, the SEC has been put into a delicate position by the letter. By carrying on regardless, it would make it seem that it is “defying” congress, but on the other hand, if they accede to it, the SEC might be seen as bowing to pressure and intimidation.

The congressmen, dubbed the “blockchain eight”, are continuing undeterred. Rep. Torres, also had an op-ed published in the New York Daily News, which argued for a “loosening” of an “already unregulated sector”, pouring scorn on the New York Department of Financial Services (DFS).

“The New York Department of Financial Services (DFS) has the dubious distinction of being the single worst regulator of crypto in the country,” he inveighed. “It takes up to three years to get a license and only 30 companies have been approved for one. From June to January, not a single license was granted.”

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.