U.S. Rep. Tom Emmer, a ranking member of the U.S. House of Representatives, who has previously raised concerns about the U.S. Securities and Exchange Commission’s actions in the cryptocurrency industry, supported a budget amendment that restricts the SEC’s use of cryptocurrencies Digital Asset Enforcement Means on September 8th.
In his Explanation Emmer criticizes SEC Chairman Gary Gensler, claiming he has overstepped his authority, which is negatively impacting the American people. Emmer called on Congress to use available methods and appropriate procedures to prevent the potential misuse of taxpayer funds by Gensler and the SEC.
Emmer co-sponsored several bills to improve regulatory transparency in the United States.
.@GaryGensler 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.
— Tom Emmer (@GOPMajorityWhip) September 8, 2023
The budget amendment limits the SEC’s use of funds for digital asset enforcement until comprehensive rules and regulations are established. The lack of cryptocurrency regulations has raised concerns about the SEC’s significant spending on litigation with numerous crypto companies, which could “weaponize” taxpayer money, according to Emmer.
In March, Emmer introduced the Blockchain Regulatory Surety Act bill, which clarifies that blockchain developers and service providers are not considered money transmitters because they do not hold consumer funds.
The bill distinguishes between custody providers and non-custodial providers and relieves the latter of unnecessary compliance burdens that could hinder innovation in the United States. This clarification ensures that validators, miners, and other non-custodial service providers are not categorized in the same way as custodial providers.
Key figures in the blockchain sector, such as Kristin Smith, CEO of the Blockchain Association, and Sheila Warren, CEO of the Crypto Council, expressed their support for the proposed legislation. Emmer also supported the SEC Stabilization Act by Rep. Warren Davidson, who tried to remove Gary Gensler from his position as chairman of the SEC.
