Congressman Emmer Accuses SEC Of Being “Power-Hungry” In HearingJuly 19, 2022 7:06 pm
In a recent hearing, Congressman Tom Emmer (R-MN) criticized the SEC’s current regulatory approach which involves sending subpoenas to crypto businesses that do not lie under the agency’s jurisdiction.
One of the top SEC officials, SEC Division of Enforcement Director Gurbir Grewal, had admitted that the agency was doing this type of practice during the congressional hearing.
In response to that, Emmer stated that the SEC was overreaching in its regulation practices which would be considered “power-hungry” and potentially unconstitutional.
This was not the first time that the SEC had faced pressure from members of Congress as the agency has received letters in the past which requested them to provide more clarity on their regulation process.
Unfortunately, many claim that the SEC has yet to provide sufficient answers to the questions submitted in the letter.
"Under chair Gensler the SEC has become a power-hungry regulator, politicizing enforcement, baiting companies to come in and talk to the commission then hitting them with enforcement actions and discouraging good faith cooperation.
A NEW DAY IS COMING!" – Tom Emmer pic.twitter.com/9sb55HWy10
— Ashley PROSPER (@AshleyPROSPER1) July 19, 2022
“We’re not limited by our jurisdiction when we’re collecting evidence,” stated Grewal. “We follow the evidence wherever it leads us to.”
The answer prompted a strong rebuke from Rep. Emmer, who declared that SEC Chair Gary Gensler had in the past ordered sweep letters to be sent to crypto industry participants in order to “jam them into a violation” and even “make it a ‘bloodbath’ for [companies that do not respond].”
He furthermore stated that:
“The SEC is hellbent on expanding the size of its crypto enforcement division, using enforcement to unconstitutionally expand its jurisdiction.
Under Chair Gensler the SEC has become a power-hungry regulator, politicizing enforcement, baiting companies to ‘come in and talk’ to the Commission then hitting them with enforcement actions, and discouraging good faith cooperation.”
The pressure is not only coming from Congress, but it seems that even members of the agency itself are against the actions that have been led by SEC Chair Gary Gensler.
This includes SEC Commissioner Hester Pierce which slammed the agency for its “flawed” regulatory and enforcement agenda.
Previously, she had commented that the SEC was becoming more of an enforcement agency rather than a regulatory agency which would be problematic for the crypto industry.
As a result, the actions would likely prohibit innovation and growth that the country needs in order to become one of the centers for crypto in the future.
— MadSatter (@digistonks) July 19, 2022
SEC Division of Enforcement Director Gurbir Grewal accepted In hearings that regulatory body has routinely taken action against crypto industry participants that may be outside its jurisdiction.
Asked by US Representative Tom Emmer how the SEC will respond to a crypto company not responding to a sweep letter (a request for companies to produce documents on a voluntary basis) from regulators because the company itself is not under the SEC’s jurisdiction comes, Grewal replied that the agency could “proceed with a summons, and then a summons enforcement action.”
The SEC’s approach to crypto lately has been critical from many sides. One of its own commissioners, notably pro-crypto Hester Peirce, Slammed The agency last month for its “flawed” and dangerous crypto regulatory agenda.
Meanwhile recently a judge Guilty The agency of hypocrisy in its conduct in a court case involving crypto company Ripple.
🚨The SEC Director of Enforcement admits the SEC is cracking down on companies outside its jurisdiction. Absolutely unacceptable. pic.twitter.com/wRQU54Ov6v
— Tom Emmer (@RepTomEmmer) July 19, 2022
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