SEC Chairman Gary Gensler is due to testify before Congress, Rep. Tom Emmer says

Minnesota Rep. Tom Emmer called Securities and Exchange Commission Chairman Gary Gensler on Sunday, requesting that the official speak before Congress about his approach to regulating cryptocurrencies.

“@GaryGensler must testify before Congress and answer questions about the cost of his regulatory failures,” he wrote in a Twitter thread.

Emmer says the SEC failed to gather the necessary information from crypto firms that would have prevented disasters like the $32 billion crash of cryptocurrency exchange FTX.

“We now know that Gensler’s cryptographic intelligence gathering efforts have been ineffective,” he said.

He argued that the SEC has shown a consistent lack of clarity regarding its approach and has been unwilling to provide actionable information. He referred to a letter sent to Gensler in March asking specific questions about the financial watchdog’s policies and procedures, questions he said were sidestepped in Gensler’s response.

“[Gensler] declined to provide Congress with the information requested in the letter, which would have alerted Congress to apparent inconsistencies in Gensler’s approach that caused him to miss Earth/Moon, Celsius, Voyager and FTX,” he said.

Emmer also said the Congressional Blockchain Caucus, of which he is a co-chair, has received reports of SEC inquiries and investigations worthy of concern.

“Efforts to gather information about cryptographic companies have not been focused, intentional, or clear-cut,” Emmer said. “Rather, the SEC’s inquiries were haphazard and unfocused.”

Gensler’s lack of transparency is ultimately hurting investors, Emmer said. He noted that Gensler hasn’t made a public appearance before the House Financial Services Committee since October of last year.

“Gensler has repeatedly dodged Congress at the expense of investors… by letting us know about SEC cryptocurrency investigations, like the FTX one, through the media,” he said.

Emmer’s criticisms of Gensler on Sunday weren’t the first time the congressman has targeted the SEC chairman.

In March, Emmer raised concerns about the SEC’s interactions with cryptographic firms. Even then, he was focused on the SEC’s intelligence gathering, but at the time, he said the agency was stifling innovation with an “overburdened” approach.

“Cryptocurrencies must not be burdened with burdensome extra-jurisdictional reporting obligations,” he wrote in a subsequent Tweet. “We will make sure our regulators don’t kill American innovation and opportunity.”

Last month, too weighed about the implosion of FTX. He described the company’s rapid demise not as a failure of cryptocurrencies, but rather a failure of Sam Bankman-Fried, the exchange’s founder and former CEO, as well as Gensler’s leadership.

Stay up to date on cryptocurrency news, get daily updates in your inbox.

Add a Comment

Your email address will not be published. Required fields are marked *