Rep. Tom Emmer ripped into SEC Chair Gary Gensler during a recent House Financial Services Committee hearing calling him the “most destructive, lawless SEC chair in history.”
The Minnesota congressman accused Gensler of mishandling the cryptocurrency industry and using what he calls “regulation by harassment” as his go-to tactic.
SEC rules drive companies out of the US
Emmer claims the SEC has created an environment where it’s almost impossible for crypto companies to access financial services, forcing them to seek more favorable conditions abroad.
He mentioned how the companies are now looking to places like China, where the regulations aren’t as hostile.
He pointed out that since Gensler took over, the SEC has finalized about 55 rules related to crypto.
According to Emmer, none of these have helped blockchain companies comply with regulations, and instead, they have stifled the industry.
Emmer also blamed the collapse of FTX and Terra on Gensler. He pointed out that the SEC chair met with FTX representatives at least twice before its eventual implosion.
He also slammed the SEC’s handling of SAB 121, a rule related to accounting standards for crypto companies. Emmer argued that the rule destroys investor trust and undermines market stability.
He believes that this overreach destabilizes the market and also reflects poorly on Gensler’s leadership at the SEC.
“Your public statements are not regulations. It’s not responsible to expect the American people to assume your statements are a substitute for rules.”
– Tom Emmer
The congressman then called for Gensler’s dismissal, describing him as ineffective and incompetent. He blasted his entire regulatory strategy, accusing him of lacking transparency and consistency.
Emmer also said that Gensler’s actions have done more harm than good, pointing out that dozens of enforcement actions against companies have taken place under his watch, yet not a single clear regulation has been set for the industry.
He announced plans to introduce an amendment that would prevent the SEC from using taxpayer money for crypto enforcement until proper guidelines are in place.
Emmer assured that this wouldn’t stop the prosecution of criminal fraud or other abuse but would halt what he sees as the SEC’s abuse of power under Gensler.
