Members of Congress Worry SEC is stifling innovation with scrutiny of cryptocurrency

In a bipartisan letter issued by Minnesota Republican Congressman Tom Emmer, a group of members of Congress wrote to Securities and Exchange Commission (SEC) Chairman Gary Gensler, challenging the oversight of the House of Representatives. regulator for crypto companies and expressed concern that the “overload” investigation could suffocate the crypto industry.

They argue that the SEC is sinking companies in paperwork that is contrary to the stated goals and authorized jurisdiction of the SEC.

Emmer tweeted to his 51,000 followers:

“My office has received a lot of advice from crypto and blockchain companies that the SEC Chairman @GaryGenslerThe “requirements” of information to the crypto community are overwhelming, don’t feel special… voluntary… and are stifling innovation. “

In the letter, co-signed by four Democrats and three Republicans, all are members of the bipartisan Congressional Blockchain. CaucusEmmer asserts that the Gary Gensler-led SEC is abusing its investigative powers and overloading crypto companies – claiming that the regulator used the Food and Drug Administration authorities to Competition and Inspection Division to unfairly exploit crypto and blockchain companies in excessive paperwork.

The lawmakers believe the regulator abused these divisions and pointed to limitations in the SEC’s mandated authority,

“It appears that there has been a recent tendency to use the investigative functions of the Enforcement Division to gather information from unregulated blockchain and crypto industry participants in a manner inconsistent with the Commission’s criteria for initiating an investigation.”

Members of Congress believe that the SEC may be in violation of the Paperwork Reduction Act (PRA) of 1980, which regulates the amount of paperwork that any private person or entity should provide to the agency. federal agency.

Managing Partner at Emerging Technology Legal Firm BrookwoodCollins Belton praising Emmer’s work on Twitter, saying that the letter’s claims “wouldn’t have painted the commission in a nice way.”

So is Belton shared that he is “really delighted” that the issues raised by Emmer and other members of Congress have come to light, as legal privilege makes it difficult for him to express concerns about the SEC publicly. declare.

“I haven’t been able to discuss as much in public as I would have liked due to privilege issues, but with answers to some of these issues, I think the public will find some of these requests ridiculous. To what extent.”

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Emmer has been a staunch defender of blockchain technology and cryptocurrencies in the past, introducing Confidentiality Clear Act in July 2021, to provide a clear legal definition for digital assets. Emmer hopes that the bill will allow blockchain entrepreneurs to distribute their assets without fear of any additional regulatory burden, after meeting the requirements set out in the bill. The bill is still in the introductory stage and has not yet passed the House of Representatives.