Regulators are attempting to “jam” crypto firms “into a violation,” according to Rep. Tom Emmer.
In a congressional hearing, one of the SEC’s top executives stated that the agency has been delivering subpoenas to crypto sector players that do not fall within its jurisdiction. Congressman Tom Emmer was particularly critical of the agency’s regulatory approach (R-MN).
During a hearing before Congress, Congressman Tom Emmer slammed the Securities and Exchange Commission for what he saw as an overreach in its crypto regulation procedures.
Director Gurbir Grewal stated in a hearing on Capitol Hill that the SEC’s Division of Enforcement had taken action against crypto sector players in ways that may be beyond the agency’s authority.
In response to a question from Congressman Tom Emmer about the SEC’s response to a crypto company refusing an SEC “sweep letter” (a request from regulators for companies to produce documents voluntarily), Grewal said that the agency could “proceed with a subpoena, and then an enforcement action under a subpoena.”
As a result of Rep. Emmer’s outburst, SEC Chair Gary Gensler was accused of ordering “sweep letters” for crypto sector players to “jam them into a violation” and even “make [businesses] bleed” if they didn’t comply. In addition, he said:
To increase its authority, the SEC is determined to increase the size of its crypto enforcement section. Power-hungry SEC regulators have politicised enforcement, enticing corporations into ‘coming in and talking’ with the Commission before slamming them with enforcement measures. They have also discouraged good-faith collaboration.”
There has been a lot of criticism of the SEC’s stance on cryptocurrency recently. Last month, the agency’s commissioner, the crypto-friendly Hester Peirce, blasted it for its “flawed” and “destructive” regulation plans for the cryptocurrency industry. Regarding Ripple, the agency was recently slammed for its alleged hypocrisy.
Also Read: Mike Novogratz predicts Bitcoin can hit $500k in 5 years