SEC Chairman Gensler Should Answer For His Regulatory Failures, Says A US Senator

Tom Emmer, a US Senator from Minnesota, is criticizing Gary Gensler – the chairman of the United States Securities and Exchange Commission (SEC) – for his faulty endeavors in getting information regarding crypto. He says, “the SEC chair should be answerable to Congress and suggest the price of the regulatory failures that he is responsible for.”

Tom Emmer Criticizes SEC Chair for Negligent Methods of Information Gathering Regarding Crypto

The remarks of the senator have been witnessed in a Twitter post. In the respective tweet, he additionally has cited a Blockchain Caucus letter. That letter is bipartisan and co-authored by him and has been sent to Gary Gensler. In the letter, Emmer noted that they were aware of the inefficiency of the information-gathering methods utilized by Gensler.

He also has referred to the huge crashes of the top crypto platforms taking into account FTX, Voyager, Celsius, and the Terra ecosystem. In another tweet, he asserted that the SEC chair refused to offer the requested information to Congress including the seeming inconsistencies in his approach that led him to omit the above-mentioned grand incidents.

The senator added that Gensler requires testifying in front of Congress in addition to answering the questions related to the regulatory failures.

Emmer was of the view that, since the 5th of October, the SEC chair has not faced the House Committee on Financial Services. According to him, this led the media to fill the gap by saying that the SEC had failed in its investigative strategies.

As mentioned by those who wrote the Blockchain Caucus letter, the efforts of the SEC in obtaining information from the crypto entities had been deficient, unclear, unintentional, and untargeted with no focus at all.

Emmer claimed that the response of the chairman, which appeared 2 months later, did not answer many questions concerning the methods as well as the procedures to be adopted by the regulator in offering oversight to the industry of digital assets.

Rather, he added, Gensler went on to elaborate on the roles played by the Examination and Enforcement Divisions of the SEC in front of Congress. Formerly, the senator condemned the crypto oversight plan of the Securities and Exchange Commission.

In his words, Congress does not require knowing the particulars of the oversight framework of the SEC via planted stories mentioned in liberal publications.

A few days back, on the 23rd of November, the senator shared a Twitter post noting that the inefficiency of the leadership of Gensler significantly contributed to the disastrous collapse of FTX. He specified that it was not the failure of the crypto market rather it was a failure of centralized finance.

The Senator Wants the Authorities to Let Crypto Industry Innovate

A major part of the struggle carried out by the SEC was centered around determining whether crypto assets come within the description made by the Howey test. On this argument’s base, the agency has been claiming that these assets are to comply with the securities laws of the United States. In this regard, it filed the most famous lawsuit against Ripple over its XRP token.

Since approximately 2020, Emmer has been a supporter of crypto assets. He has been promoting the idea that the authorities in the United States should not hinder the progress of the crypto world, paving the way toward innovation.