Rep. Tom Emmer from Minnesota’s 6th District recently wrote to Gary Gensler, Chairman of the Securities and Exchange Commission. He asked questions about the SEC’s requirements for crypto industry reporting.
This letter was written by multiple blockchain companies on behalf of those who claim that these requirements, referred to as “requests”, are not voluntary and stifle innovation.
The Crypto Sector is being stifled
The letter was sent on Wednesday and signed by seven other congressmen, spanning all parties. These are Darren Soto and Warren Davidson, Jake Auchincloss and Byron Donalds. Ted Budd and Ritchie Torres are the other co-signers.
This letter indicates that the SEC is using inappropriately its investigative powers under the Paperwork Reduction Act. Federal agencies are required to “good stewards” the public’s time and not overwhelm it with redundant or duplicate requests for information.
The letter states that there appears to be a trend in recent years towards using the Enforcement Division’s investigative capabilities to gather information from unregulated blockchain industry participants in a way inconsistent with the Commission standards.
The SEC then follows up with 13 questions regarding why and how the SEC is seeking information from different blockchain companies. The SEC requests information about the number of documents it has requested from individuals and companies regarding their involvement in blockchain technology over five years.
It also inquires whether there is a limit on the number of related requests that the SEC can make each year and if the SEC conducted a cost-benefit assessment of the effectiveness of its requests.
Emmer stated that “crypto startups should not be burdened by burdensome reporting requirements and extra-jurisdictional jurisdictions.” “We will make sure our regulators don’t kill American innovation and opportunity.”
Bipartisan Critique of Gensler
This letter shows a refreshing wave in bipartisan defense of crypto. There is clearly a divergence between political opinions about it. Many Republicans were quick to support the growth of the industry in the U.S. but Democrats were more skeptical.
The three U.S. senators who are known to have Bitcoin in their possession – Pat Toomey and Cynthia Lummis – are all Republican. Democratic senator Elizabeth Warren, on the other hand, has been one of the most vocal critics of cryptocurrency, citing everything, from their volatility to their use for criminal activity.
Eric Adams, a New York Democrat, was able to receive his first three paychecks in Bitcoin. He now says he does not support crypto mining because of environmental concerns.
There has been bipartisan opposition to crypto. Trump and Hillary Clinton, former Secretary of State, are concerned that BItcoin might undermine the US dollar.
Marla Brooks – Financial Analysis
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