GOP Congressman Plans Budget Amendment to Limit SEC’s Cryptocurrency Regulation
Minnesota Congressman Tom Emmer plans to introduce a budget amendment to limit the SEC’s use of its cryptocurrency regulation budget.
Emmer, a Republican who holds the position of Majority Whip in the US House of Representatives, is preparing to sponsor a major bill to amend appropriations, citing concerns about excessive power exercised by Securities and Exchange Commission Chairman Gary Gensler.
This amendment seeks to limit the SEC’s ability to allocate taxpayer funds to digital asset enforcement efforts.
Emmer said in a social media post that Gensler’s actions negatively impact Americans’ ability to explore the potential of Bitcoin (BTC) and other cryptocurrencies. Congress, it is He saysMust use appropriate procedures to prevent any potential misuse of taxpayer funds by the SEC.
Gensler expresses concerns about cryptocurrencies
While crypto enthusiasts may disagree with his approach to regulation, Gensler continues to express his concerns about the cryptocurrency market.
During a recent interview, Gensler emphasized the prevailing issues of deceptive activities and non-compliance with regulations in the cryptocurrency space. These concerns arise after a landmark legal ruling on whether XRP should be classified as a security, a decision that conflicts with the SEC’s previous position.
Former SEC Chairman Defends Bitcoin ETFs
Former SEC Chairman Jay Clayton, who served in the position from May 2017 to December 2020, now asserts that bitcoin ETFs deserve approval. In an interview with CNBC, Clayton acknowledged the remarkable progress the cryptocurrency industry has made, particularly with respect to institutional investment.
He praised the growing acceptance of Bitcoin by major market players and emphasized growing confidence in the sector’s regulatory safeguards.
Cryptocurrency Regulatory Challenges at Gensler
The controversy over the SEC’s handling of cryptocurrency regulation reached a critical point when Louisiana Republican Senator John Kennedy questioned Gensler’s authority and the SEC’s competence in tackling cryptocurrency fraud during a Senate committee hearing on July 19. This confrontation focused on FTX, a prominent cryptocurrency exchange founded by Sam Bankman Fried.
Gensler’s journey through the cryptocurrency landscape has been marked by changing attitudes, confrontations with industry leaders, and spiraling rumors. His evolution from initially supportive positions to a more hawkish approach provides a unique perspective to his tenure as SEC Chairman.
US Congressman Warren Davidson renewed his calls for Gensler’s removal after a court ruling in favor of Grayscale. Davidson argues that this ruling further confirms the claim that Gensler’s actions at the SEC lacked consistency and appeared arbitrary.
This latest legal defeat marks the second setback for Gensler and his team, as the previous ruling was in favor of Ripple in a lawsuit brought by the Securities and Exchange Commission.