Tom Emmer, a Republican Congressman from Minnesota and the Majority Whip in the House of Representatives is preparing to introduce an amendment to an appropriations bill. This proposal aims to restrict the U.S. Securities and Exchange Commission’s (SEC) spending on cryptocurrency regulation. Emmer expressed concerns in a social media post that SEC Chair Gary Gensler is overstepping his authority, which could hinder the growth of digital currencies like Bitcoin in the U.S. Emmer believes that Congress needs to exercise proper oversight to prevent potential misuse of public funds by the SEC.
Meanwhile, Gary Gensler continues to express his reservations about the crypto market, particularly issues of fraudulent activities and non-compliance. This follows a legal decision on the status of XRP that contradicts the SEC’s earlier stance.
In contrast, Jay Clayton, the former SEC Chairman, has spoken in favor of approving Bitcoin ETFs. During a CNBC interview, Clayton lauded the strides made by the cryptocurrency industry, particularly regarding institutional investment. He also spoke highly of the increasing confidence in regulatory mechanisms within the crypto sector.
The controversy surrounding the SEC’s approach to cryptocurrency regulation escalated when Senator John Kennedy from Louisiana questioned Gensler’s authority and the SEC’s capability in addressing crypto fraud. This scrutiny took place in a Senate Committee hearing on July 19 and centered on FTX, a leading cryptocurrency exchange.
Gensler’s leadership at the SEC has been characterized by shifting opinions, conflicts with industry figures, and ongoing speculation. His regulatory approach to crypto has evolved from initial supportiveness to a more stringent stance.
U.S. Congressman Warren Davidson recently rekindled his demand for Gensler’s removal, citing a court ruling in favor of Grayscale as evidence of inconsistency in Gensler’s actions at the SEC. This recent legal setback is the second for Gensler and his team, the previous one being a ruling in favor of Ripple in a lawsuit initiated by the SEC.