Gary Gensler, Chairman of the Securities and Exchange Commission (SEC), has been reprimanded by House Majority Whip Tom Emmer for the former’s incompetence in handling the crypto industry. The congressman commented that the actions of the SEC have forced crypto institutions to flee to other countries like China.
Rep. Emmer is not the first member of Congress who disagrees with Gensler’s leadership style. Patrick McHenry, North Carolina’s 10th District representative, showed concern about the SEC’s lack of clarity in classifying digital assets as securities. Representative Warren Davidson, from Ohio’s 8th district, is proposing legislation to overhaul the SEC by removing the chairmanship role. The congressman wants to replace the SEC chair with an executive director who will report directly to the board.
Gensler Failed to Give Straight Answers
The Congress Majority Whip asked the SEC Chairman to answer with a simple yes or no to save time, but instead Gensler tried to give explanations that did not satisfy the congressman from Minnesota.
Rep. Emmer asked if the SEC had a role in making it difficult for the digital assets industry to access financial products and services in the United States. When Gensler failed to answer with a definitive yes or no, the congressman simply said yes. Though no elaboration was given on the congressman’s part, a possible explanation is how the government is trying to cut off the crypto industry by making it hard to do business.
The congressman also questioned Gensler on how the SEC levied 55 enforcement actions against digital assets players, yet it failed to do anything about the collapse of Luna and FTX. Congressman Emmer also questioned that this happened despite the SEC Chairman meeting with FTX a couple of times.
Congress is Starting to See the Light
The job of Congress is to primarily represent the people of the United States. This is to ensure that people’s voices and sentiments are heard in the national political discourse. Congress is also tasked with crafting and passing legislation that will address issues facing the country. It also has the power to oversee and investigate the executive branch. Congress is doing a fantastic job of exposing the SEC’s lack of sensible direction in handling digital assets. The Legislative branch is finally voicing out the sentiment of a lot of investors.
Members of Congress are now starting to understand that the SEC, under Gensler’s rule, is harming the people and investors it was supposed to protect. Rep. Emmer has rightfully pointed out that the SEC is accusing the crypto industry of non-compliance, yet the agency has failed to define sensible rules for blockchain companies. This failure to provide clear regulations has forced American innovators to seek friendlier jurisdictions. Capital that should have been invested in the U.S. is now with other countries.
In the end, the voice of the people should be the guidance for any government. The people’s wish to reign in the SEC’s draconian rules on digital assets has been fantastically delivered by members of Congress.
About the House Majority Whip
the Majority Whip is a high-ranking member of the majority party who is responsible for ensuring that members of their party vote in line with the party’s legislative agenda The Whip works closely with the Majority Leader and the Speaker of the House. The job also entails coordinating and persuading party members to support the passing of key legislation
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