- Congressman Emmer argues SEC Chair Gensler overstepped authority; seeks congressional support.
- Additionally, Emmer has thrown his support behind the SEC Stabilization Act.
In a significant step in the US crypto regulatory landscape, a member of the US House of Representatives plans to introduce a bill that could restrict the Securities and Exchange Commission’s (SEC) ability to enforce regulations within the sector.
This initiative comes as the SEC, under Chair Gary Gensler, has been actively seeking to assert more control over the rapidly evolving digital assets landscape. Emmer’s proposed appropriations amendment bill aims to curtail the SEC’s use of funding for enforcement actions directed at the sector.
In a post on X (formerly Twitter), Representative Tom Emmer, expressed concerns, stating, “Gary Gensler has abused his authority to grow the Administrative State to the detriment of the American people. Congress must use all our tools, including the appropriations process, to restrict Chair Gensler from further weaponizing taxpayer dollars.”
SEC’s Faces Hurdles In Crypto Regulation Attempts
Additionally, Emmer has thrown his support behind the SEC Stabilization Act, proposed by fellow Republican Warren Davidson, to remove Gensler from his current position. Emmer has been a vocal supporter of various pro-crypto bills, including the Blockchain Regulatory Certainty Act, designed to establish clear distinctions among blockchain developers, service providers, custody providers, and money transmitters.
Last month, the SEC presented 47 proposals that have far-reaching implications for market participants. A report by the Financial Times stated that in 850 days, ending on August 15, the Committee on Capital Markets Regulation assessed that the SEC adopted 22 of these proposals- an unpredicted pace of regulatory change.
However, the SEC recently encountered challenges in its attempts to assert authority over the crypto industry. Notably, it suffered a partial loss in the Ripple case and faced a ruling from a US Appeals Court that deemed its rejection of Grayscale’s bid to convert its Bitcoin Trust into a spot ETF as arbitrary.
Earlier this year, Chair Gensler defended the SEC’s budget request to $2.4 billion for the upcoming fiscal year, an increase from the $2.1 billion requested in 2022. Gensler argued that this additional funding was necessary for the SEC to keep pace with the rapid innovation occurring within the crypto industry.
