Congressman Tom Emmer proposes amendment to curb SEC’s crypto oversight

United States Representative Tom Emmer, Majority Whip of the U.S. House of Representatives, sponsored an appropriations amendment on September 8 aimed at restricting the Securities and Exchange Commission’s (SEC) use of funds for digital asset enforcement. The move comes amid growing concerns over the SEC’s extensive legal expenditures in disputes with various cryptocurrency entities.

In a statement, Emmer accused SEC Chair Gary Gensler of overstepping his authority, thereby negatively impacting the American populace. The Congressman urged legislative bodies to employ proper procedures to prevent potential misuse of taxpayer funds by the SEC. This initiative aligns with Emmer’s previous efforts to enhance regulatory transparency, including the introduction of the Blockchain Regulatory Certainty Act earlier this year.

Bipartisan concerns over SEC’s crypto approach

The amendment proposal follows a call from Senator Bill Hagerty, a Republican member of the Senate Banking Committee, for more hearings focused on the SEC’s treatment of digital assets. The Senator expressed the need for a deeper investigation into the interactions between the SEC and the cryptocurrency sector.

Emmer’s amendment aims to limit the SEC’s funding for digital asset enforcement until comprehensive regulations are established. This move is seen as a response to the absence of clear cryptocurrency regulations, which has led to concerns about the SEC potentially “weaponizing” taxpayer funds. The amendment distinguishes between custody and non-custody providers in the blockchain sector, relieving the latter from unnecessary compliance burdens.

Notable figures in the blockchain industry, such as Blockchain Association CEO Kristin Smith and Crypto Council CEO Sheila Warren, have expressed support for the proposed legislation. Additionally, Emmer has endorsed Representative Warren Davidson’s SEC Stabilization Act, which seeks to remove Gary Gensler from his position as SEC Chairman.

The proposed amendment and calls for more hearings indicate a bipartisan concern over the SEC’s current approach to cryptocurrency regulation. As digital assets continue to gain prominence, the need for clear, fair, and transparent regulations becomes increasingly urgent. Both Emmer’s amendment and Senator Hagerty’s call for more hearings reflect this growing concern and represent steps toward establishing a more balanced regulatory framework for digital assets in the United States.