- Gary Gensler, the SEC chairman, is a “bad faith regulator,” says Emmer
- The congressman criticized the regulator’s frequently hostile attitude to overseeing the crypto industry
- He cited the Coinbase case as an example of Genser’s unreceptive stance towards the sector.
The representative of the United States Congress for the state of Minnesota, Tom Emmer, does not mince words to criticize the chairman of the Securities and Exchange Commission (SEC), Gary Gensler, for his strict regulatory approach to cryptocurrencies.
During a recent appearance on the Unchained podcast, hosted by journalist Laura Shin, the congressman questioned Gensler’s oversight of the digital asset space, labeling him a “bad faith regulator.”
Emmer was candid when he suggested that the head of the main financial regulatory agency does not appear to have any intention of cooperating with companies in the cryptocurrency industry, despite the SEC’s alleged “open door” policy. To the sound of a Republican politician, this attitude has caused the agency to focus on going after the wrong actors.
Congressman questions Gary Gensler’s attitude
The American congressman, lawyer, and politician is well known for his crypto-friendly stance and has sponsored many bills aimed at growing the space, including a recent proposal to bring greater regulatory clarity to the cryptocurrency and Blockchain sector.
Emmer has also joined efforts to block the Federal Reserve (FED) from issuing a CBDC, or central bank digital currency, citing concerns that such a development could infringe on the financial privacy of Americans.
Gensler, on the other hand, has been leading increasingly tough efforts with infant industry companies since he took over the SEC in 2021. In large part, this stance stems from his belief that most assets digital, with the exception of Bitcoin, fall under the classification of securities, which is why it ensures they must be under the supervision of the SEC.
Under Gensler’s leadership, the agency has been taking action against various companies and players in the cryptocurrency industry, alleging, in most cases, violations of federal securities laws. This despite the fact that there is no consensus among regulators on such a classification and the lack of clarity regarding the supervision of the sector.
“Gary Gensler might have an open door, but it’s a door at your own risk,” Emmer commented on the SEC’s alleged responsive stance while citing the recent debacle between the SEC and Coinbase, an exchange the congressman described as an example. as one of the crypto companies that most comply with regulations.
The Coinbase case is an example, says Emmer
The Republican noted that Coinbase had tried to tap into the “ Gensler open door ” by engaging with the SEC regarding its Earn product, which the exchange intended to list for its clients. The cryptocurrency platform would have attended several meetings at the regulator’s offices to clarify the issue of its commercial product.
And instead, after all these meetings and nothing happening, the SEC sent Coinbase a Wells Notice on the very issues Coinbase was asking their opinion on.
Coinbase Earn is a staking rewards product where users can passively earn income from their crypto holdings. The SEC recently ordered Kraken to shut down the offering for a similar product. That exchange paid a $30 million fine to the agency to settle the charges.
Gensler has been adamant that proof-of-stake (PoS)-based tokens, and thus staking programs in general, could qualify as securities; a topic that has been widely debated. This hostile attitude of the president towards cryptocurrencies seems to be extrapolated to the way the agency deals with companies in the sector.
Several digital currency industry executives, including Coinbase CEO Brian Armstrong and former Kraken CEO Jesse Powell, have repeatedly highlighted the difficulties in dealing with the SEC.
“Clearly, this is not the way the government should serve the American people, and I think it sends a clear message to the broader cryptocurrency community, and that is direct ‘Gary Gensler is not regulating in good faith,’” he concluded. Emmer.
