Us Congressman Accuses Sec Of “Unethical Attitude” To The Crypto Industry

The US Securities and Exchange Commission (SEC) interferes with regulating the cryptocurrency industry and acts unethically towards its participants. This was stated by a member of the House of Representatives, Tom Emmer.

During a meeting of the Financial Services Committee of the lower house of the US Congress, Emmer accused the Commission of politicizing the rules. In his opinion, the chairman of the department, Gary Gensler, chose the tactics of harassment and threats.

“Under Gensler, the SEC has become a power-hungry regulator that politicizes law enforcement by forcing companies to ‘come and talk’ with the Commission and then enforcing them to prevent good faith cooperation,” the politician said.

Emmer asked Gurbir Grewal, director of enforcement at the SEC, whether such checks are within the agency’s authority and what threatens companies that refuse to dialogue.

The representative of the department admitted to taking coercive measures against organizations that are not under the jurisdiction of the Commission. Emmer called the actions of the regulator “absolutely unacceptable.” In his opinion, the department uses unfair methods regarding digital assets.

Congressman Brad Sherman, who has previously called for a ban on buying cryptocurrencies and mining, has criticized the SEC for its approach to industry participants. He recalled that the regulator charged Ripple with selling unregistered securities in the form of XRP and not with trading platforms.

Gensler took over the department in April 2021. Over the next few months, he called on Congress to bring clarity to the regulation of the crypto industry and warned of increased oversight of stablecoins and DeFi.

Later, the head of the Commission called on bitcoin exchanges to dialogue.

In September, the SEC warned Coinbase of possible legal action if it launched USDC-based crypto savings accounts. Subsequently, the company abandoned its plans.

In the summer of 2021, BlockFi faced claims from financial regulators at the state level. Bloomberg later reported that the SEC initiated an investigation into the firm. 

In February 2022, it became known that the crypto lending platform would pay $100 million in fines as part of the settlement.

In the same month, the Commission ruled out the absence of sanctions for companies that voluntarily come under the agency’s supervision.