Jordan Ramos
Tom Emmer, a Republican Senator, has strongly criticized Gary Gensler as well as the U.S. Securities Exchange Commission's approach to cryptocurrency regulation.
Minnesota Senator Tom Emmer has severely criticized Gary Gensler, Chairman of the U.S. Securities Exchange Commission (SEC), for his unreliable “crypto information-gathering” attempts, asking that Gensler be invited to Congress to explain the consequences of his “regulatory failures.”
On December 10, Emmer sent a tweet to his 67,500 Twitter followers, mentioning a bipartisan Blockchain Caucus letter that he co-authored to the SEC chairman on March 16.
Emmer stated that ''we now know Gensler's crypto information-gathering efforts were ineffective,” referencing the declinations of the Terra ecosystem and crypto companies Celsius, Voyager and FTX.
“Gensler must testify before Congress and answer questions about the cost of his regulatory failures,” the senator added.
Emmer noted that since October 5, 2021, Gensler has not presented to the House Committee on Financial Services, leaving crypto-related media to cover for the supposed failures of the SEC in their investigations.
The writers of the Blockchain Caucus letter asserted that the SEC's process of obtaining information from crypto companies was not "targeted, intentional, or clear", but instead "haphazard and unfocused".
Emmer said that Gensler's reply, issued two months later, avoided addressing the various questions regarding the rules and techniques that the SEC would use in regulating the digital asset industry.
“Instead, Gensler decided to explain to Congress the roles of the SEC’s Enforcement and Examination Divisions,” Emmer stated.
Emmer has previously voiced his disapproval of the financial watchdog's approach to regulating cryptocurrency.
“Congress shouldn’t have to learn the details about the SEC’s oversight agenda through planted stories in progressive publications,” he stated on Nov. 26.
On Nov. 23, a few days earlier, Emmer tweeted that Gensler's absence of leadership had been a factor in FTX's significant failure earlier in the month.
For many years, Gensler and the SEC have been working to assess whether cryptocurrencies fall under the criteria of the Howey Test, which would make them liable to U.S. securities regulations, like the ongoing lawsuit concerning Ripple and its XRP token.
Since 2020, Emmer has been a vocal advocate for cryptocurrencies, arguing that the U.S. government should remove any obstacles that could hinder the growth of the cryptocurrency sector.