The United States is going through a very tumultuous phase of crypto regulation with diverse opinions among its lawmakers and other officials. On 18 April, the Republican party’s chief whip Tom Emmer slammed Securities and Exchange Commission’s chairman Garry Gensler for showing a lethargic approach to crypto regulation.
After the collapse of one of the biggest digital exchanges, FTX in 2022, the Securities and Exchange Commission (SEC) has targeted many crypto firms in the country. A hearing was conducted under the Grand Old Party (GOP) controlled House Financial Services Committee. In the hearing, by presenting his views on the questions raised by Republicans, Garry Gensler said that the digital assets industry is very fast-moving additionally, it is very difficult for regulatory bodies to manage this sector.
The SEC chairman tried to convince the lawmakers but they slammed him very furiously for not making any clear working conditions and rulemaking. Republican Party chief whip Tom Emmer remained very critical of Gensler and said that the companies in the United States are suffering because of the improper and unclear approach.
Tom Emmer has been very vocal on the issue of digital assets management for a very long time. A few days back, in an interview, he severely criticized Gensler’s approach toward crypto regulation. He called the SEC chairman a “bad faith regulator”. Emmer raised questions on Garry Gensler’s “open door policy” which he announced in an interview in July 2022. According to the open door policy crypto exchanges, trading platforms, and lending platforms can come and talk to them. However, the Republican Party chief whip called this policy an entry to your risk policy.
There are some serious allegations also made against Garry Gensler for forcing firms to shift their businesses into the hands of the Communist Party of China (CCP) because of unclear policies. Emmer even called him an “incompetent cop”.
This is not the first time when lawmakers take a jab at the SEC’s approach toward crypto regulation, before the GOP hearing, a letter was issued to the Securities and Exchange Commission. “Without clear rules of the road, your push for firms to ‘come in and register’ is a willful misrepresentation of the SEC’s non-existent registration process,” says the letter. Additionally, lawmakers only blamed the SEC for its failure in providing a crypto regulation. The Financial Committee chair, Patrick McHenry also took a jab at Gensler’s approach and said, “Gary Gensler has had a woeful act to just go out and send Wells Notices rather than provide any clarity”.
The collapse of the three biggest banks in the United States, the Silicon Valley Bank, the Silvergate Bank, and the Signature Bank alarmed the lawmakers and authorities to bring comprehensive crypto regulation in the country. It seems like the regulations for digital assets management are very far away because of so many contradictory statements among lawmakers.