January 27, 2023

Senator Tom Emmer of Minnesota has criticized Gary Gensler, chairman of the United States Securities Exchange Commission (SEC), for his flawed “attempts to collect crypto-information” and urged Gensler to face Congress to pay the charges. of its “regulatory shortcomings”.

Emmer’s comments came from December 10 tweet to his 67,500 Twitter followers, where he referenced a two-part Blockchain Caucus letter he co-authored on March 16 to the SEC Chairman.

Emmer said, “We now know that Gensler’s efforts to gather crypto information were ineffective,” citing the collapse of the Terra ecosystem and the bankrupt crypto platforms Celsius, Voyager and FTX.

“[Gensler] must testify before Congress and answer questions about the cost of his rule failure,” the senator added.

He pointed out that Gensler has not appeared before the House Committee on Financial Services since Oct. 5, 2021, leaving crypto media to fill the gap for the SEC’s investigative errors, Emmer said.

Writers of the March Blockchain Caucus Letter stated that the SEC’s efforts to obtain information from crypto companies were not “targeted, intentional, or obvious,” but rather “happy and unfocused.”

Emmer argued that Gensler’s response — which came two months later — sidestepped several questions that probed the methods and processes the SEC would employ to oversee the digital asset industry.

“Instead, Gensler decided to explain to Congress the role of the SEC’s Enforcement and Investigations Departments,” Emmer said.

Emmer has previously criticized the financial watchdog’s crypto oversight strategy.

“Congress shouldn’t be learning the details of the SEC’s oversight agenda through implanted narratives in forward-thinking publications,” he stated on Nov. 26.

Related: Republican lawmaker claims SEC chairman coordinated with FTX ‘to gain regulatory monopoly’

A few days earlier, on November 23, Emmer tweeted that Gary Gensler’s lack of leadership contributed to the catastrophic collapse of FTX that took effect in early November.

Much of Gensler’s and the SEC’s efforts in recent years have focused on determining whether cryptocurrencies fall within the definition of the Howey test and are thus subject to US securities laws, most notably the ongoing Ripple case with its XRP (XRP) token

Emmer has long been a proponent of cryptocurrencies as a financial asset, as far back as 2020, and believes that the US government should pave the way to ensure that innovation in the crypto industry is not hindered.