Wednesday, September 28, 2022
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Congress members oppose SEC’s information requests to crypto firms

Several members of Congress have written to Gary Gensler in protest over the SEC’s attempts to seek information from bitcoin companies. In a letter sent to Gensler on Wednesday, Congressman Tom Emmer (R-MN) criticises the US agency’s recent efforts to “collect information from unregulated cryptocurrency and blockchain sector players in a manner inconsistent with the [SEC’s] requirements for commencing investigations.”

Reps. Darren Soto (D-FL), Rep. Warren Davidson (R-OH), Rep. Jake Auchincloss (D–MA), Rep. Byron Donalds (R–FL), Rep. Josh Gottheimer (D–NJ), Rep. Ted Budd (R–NC), and Rep. Ritchie Torres (D–NY) were among the Democrats who signed the letter, which asked Gensler 13 questions. The letter inquired as to how many document requests the SEC had made to individuals and entities in the digital assets space over the previous five years, the length of time given for responses to information requests, whether any entities had refused to provide any information (and thus faced penalties), how much time had been spent on information requests to the crypto space in comparison to other industries, and other questions to learn how the SEC is looking into the digital assets space.

In a twitter storm, Emmer stated that he chose to send the letter after receiving “many indications” from crypto companies that the SEC’s information demands are “overburdensome” and put pressure on teams to comply rather than appear as a voluntary procedure. He also said that the SEC was “stifling innovation”.

Emmer added the following:

 “Crypto enterprises must not be hindered by extra-jurisdictional and time-consuming reporting regulations. We will make certain that our regulators do not suffocate American innovation and opportunity.”

As the digital asset field has grown in popularity in the previous year, including this month, crypto regulation has become a major focus for the US. President Biden signed an Executive Order on crypto assets last week, promising that the White House would support innovation while also protecting investors. At the time, Gensler commented on the order, stating he was looking forward to working with the government and would focus on “protecting investors and consumers, preventing criminal conduct, and assisting in the maintenance of financial stability.” At the time of publication, neither Gensler nor the SEC had made any public comments on the bipartisan letter.

Read more: US Congress likely to take long time to pass crypto legislation: Swiss Bank

Kunal Krishan
Kunal is an investment space writer who firmly believes investment is something which should not be a choice but a part of everyone's life.
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