Congress Members Are Questioning SEC Over Crypto InvestigationsMarch 17, 2022 1:37 pm
Recently, it looks like the SEC may be getting some pressure from Congress regarding how it handles its investigations in the crypto industry.
So far, a number of Congress members have submitted a letter to the chair of the SEC, Gary Gensler, where the letter contained questions from a total of 8 members including both Democrats and Republicans.
Specifically, Congressman Tom Emmer has accused that the SEC ‘s actions have been inconsistent recently compared to how it usually does investigations and could prevent the nation from being a innovation center for the crypto industry.
Within the letter, the questions that were posed include exactly how many requests the committee has sent in the past five years and requests for specific details on how these requests were conducted.
Ultimately, the goal is to clarify exactly what the SEC’s process is when it comes to the digital asset industry as there have been reports from crypto firms that the SEC was taking unnecessary regulatory actions that could slow technological progress.
The questions asked were about the SEC’s use of authorities in its Division of Enforcement and Division of Examination to obtain information on digital asset and blockchain firms. https://t.co/eOFSKJHOac
— USMAN BIN KHALID (@USMANBK77) March 17, 2022
The letter asked how many document requests the SEC had made to individuals and entities in the digital assets space over the last five years, the length of time given for responses to information requests, whether any entities have declined to give any information (and faced penalization), how much time had been spent on information requests to the crypto space relative to other industries, and other questions to ascertain how the SEC is looking into the digital assets sector.
In a tweet storm accompanying the screenshot of the letter, Emmer said that he had opted to send the letter after receiving “numerous tips” from crypto companies that the SEC’s information requests are “overburdensome” and place pressure on teams to comply rather than coming across as a voluntary procedure.
He also said that he had been told the SEC was “stifling innovation.”
“Crypto startups must not be weighed down by extra-jurisdictional and burdensome reporting requirements,” Emmer wrote.
“We will ensure our regulators do not kill American innovation and opportunities.”
Legal firms are reporting now that the submission of this letter by Congress will reflect negatively on the reputation of the SEC.
Previously, it had been difficult to really release criticism against the SEC in a public fashion due to legal privileges so this recent act by Congress has greatly helped raised awareness of the situation.
With a screenshot of the letter being released to the public, many are hopeful that this will easily show everyone how reform is very much needed for regulatory entities within the United States if we want crypto innovation to continue to grow.
Regulation has continually become a topic of interest ever since the massive growth of the industry back in 2021.
President Biden has also recently signed an executive order which promises to promote growth within the industry which was positively received by crypto investors.
Congress Members Challenge SEC Over #Crypto Probes
Congressman Tom Emmer (R-MN) posted a screenshot of a bipartisan letter sent to Gary Gensler discussing the SEC’s requests for information from the crypto community. https://t.co/YGykhSeCvf
— Crypto News (@N3wsCrypto) March 16, 2022
The congress members called for their queries to be answered no later than April 29.
The letter’s other signees were Rep. Darren Soto (D-Fla.), Rep. Warren Davidson (R-Ohio), Rep. Jake Auchincloss (D-Mass.), Rep. Byron Donalds (R-Fla.), Rep. Josh Gottheimer (D-N.J.), Rep. Ted Budd (R-N.C.) and Rep. Ritchie Torres (D-N.Y.). Apart from Donalds, all are members of the Congressional Blockchain Caucus.
More clarity on how regulators should be dealing with crypto firms is coming.
U.S. President Joe Biden signed an executive order two weeks ago that called for all federal agencies to coordinate their approach to crypto.
So far, neither the SEC nor Gary Gensler has responded yet to this letter from Congress which could encourage regulatory reform.
Folks, is giving information to the SEC about your unregistered securities offering feeling "burdensome"? Members of Congress captured by the crypto industry want to help. https://t.co/cCocj7vvF9
— Jacob Silverman (@SilvermanJacob) March 17, 2022
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