Key Insights:
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U.S lawmakers target Gary Gensler and the SEC for burdening private companies and citizens.
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There are concerns that the SEC’s stance on cryptos could impact innovation.
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The timing coincides with an SEC motion in the SEC v Ripple case that could prove pivotal.
It has been a busy start to the year for governments and regulators. Increased illicit activity, a surge in NFT marketplace trading, and interest in the Metaverse have led to a rise in government and regulatory scrutiny.
While U.S regulators have ramped up investigations into cryptos, others have considered the need to embrace innovation within the digital asset space.
Members of Congress Question Crypto Scrutiny
Republican congressman Tom Emmer took to Twitter overnight, sharing a letter sent to SEC Chair Gary Gensler.
Unlike most positions in Congress, the letter was bipartisan, with members from both sides of the aisle co-signing the letter. All of the signatures are members of the Congressional Blockchain Caucus.
The letter raises concerns over Gary Gensler and the SEC’s use of the,
“Enforcement Division’s investigative functions to gather information from unregulated cryptocurrency and blockchain industry participants in a manner inconsistent with the Commissions’ standards for initiating investigations.”
The letter goes on further saying,
“In seeking information from the American public, federal agencies must be good stewards of the public’s time, and not overwhelm them with unnecessary or duplicative requests for information.:”
The above is in reference to the Paperwork Reduction Act, which limits the burden federal agencies can place on citizens and private businesses.