Congress members concerned SEC stifling innovation with crypto scrutiny
In a bipartisan letter put forward by Republican Minnesota Congressman Tom Emmer, a cohort of Congress members has written to Securities and Exchange Commission (SEC) Chairman Gary Gensler, challenging the regulator's scrutiny of cryptocurrency firms and expressing concern that “overburdensome” investigation may be suffocating the crypto industry.
They suggest the SEC is drowning companies in paperwork in contravention of the SEC’s stated aims and mandated jurisdiction.
Emmer tweeted to his 51,000 followers:
This is why I sent a bipartisan letter today to SEC Chair @GaryGensler with @RepDarrenSoto, @WarrenDavidson, @RepAuchincloss, @RepDonaldsPress, @RepJoshG, @RepTedBudd, and @RepRitchie regarding the SEC’s crypto information seeking process. pic.twitter.com/8HcTgZA0XL
In the letter, which was co-signed by four Democrats and three Republicans, all of whom are members of the bipartisan Congressional Blockchain Caucus, Emmer asserts that the Gary Gensler-led SEC is abusing its investigative powers and overburdening crypto firms — claiming that the regulator has been using the Division of Enforcement and Division of Examination authorities to unfairly bog down crypto and blockchain companies in excessive paperwork.
The legislators believe the regulator has been misusing these divisions and pointed out limitations in the SEC’s mandated jurisdiction,
The Congress members believe the SEC could be violating the Paperwork Reduction Act (PRA) of 1980, which regulates the volume of paperwork that any individual or private entity needs to provide to a federal agency.
Managing Partner at emerging technologies legal firm Brookwood, Collins Belton lauded Emmer’s work on Twitter, saying that the requests in the letter “will not paint the
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