Congressman Tom Emmer has raised concerns over the operations of the U.S. Securities and Exchange Commission (SEC), stating that the regulatory body has been cracking down on companies outside its jurisdiction.
SEC Has Been Stepping Outside Its Jurisdiction
Congressman Tom Emmer, who in March sent a bipartisan letter to SEC Chairperson Gary Gensler, seeking clarity on the SEC’s information-seeking process, has once again questioned how the body is being run.
In a dialogue between Emmer and the directors of the SEC, he opined that the SEC has blamed the eroding lack of trust Americans have in the country’s financial system on “industry participants and companies.”
However, the Republican senator has accused the regulator of stepping out of its jurisdiction to prosecute cryptocurrency-based companies, further asserting that the SEC has done so at the expense of public resources.
The SEC Has Become Power Hungry
The SEC’s Enforcement Director confirmed Emmer’s application for “extra-judicial requests.” Senator Emmer also accused the agency of dissolving the division assiged to crafting crypto regulations.
Emmer declared that the regulatory agency has focused its energies on expanding its crypto enforcement division through using “enforcement to unconstitutionally expand its jurisdiction.”
The congressman wrote on Twitter (NYSE:TWTR) that, under SEC chief Gary Gensler, the regulatory agency has become more power hungry. The tweet was as follows:
Under Chair Gensler, the SEC has become a power-hungry regulator, politicizing enforcement, baiting companies to “come in and talk” to the Commission, then hitting them with enforcement actions, discouraging good-faith cooperation.— Tom Emmer (@RepTomEmmer) July 19, 2022
On the Flipside
- The SEC has filed an application to the court, requesting the revocation of the ‘amici curiae‘ status granted to XRP holders.
Why You Should Care
The motion to reduce the jurisdictions of the SEC could reduce the regulatory body’s interference in matters of cryptocurrency.
Find out about the general view Republicans hold on Crypto:
U.S. Congressional Republicans Seem Keen on Crypto
Check out the latest on the SEC Vs. Ripple case:
Lawsuit Swings in Ripple’s Favor as Judge Denies the SEC’s Attorney-Client Privilege Claims