The U.S. Securities and Exchange Commission (SEC) is still on the crypto warpath and has reached beyond its own jurisdiction, according to Senator Tom Emmer.
Republican Senator Tom Emmer has questioned the level of trust the public has in the U.S. financial system. He added that the SEC has blamed this erosion of trust on âindustry participants and companies.â
He accused the agency of using enforcement to expand its jurisdiction at the expense of public resources and trust, more so with the digital asset industry.
On July 19, Senator Emmer posted the video of the dialogue between himself and directors at the financial regulator.
SponsoredA ‘hellbent’ SEC
Senator Emmer questioned SEC Enforcement Director Gurbir Grewal about âindustry sweepsâ receiving confirmation that they do occur. When asked about current industry sweeps, Grewal refused to give details citing SEC policy.
The Enforcement Director also admitted to carrying out âextra judicial requestsâ on companies that do not fall under the SECâs authority.
Senator Emmer also stated that SEC Chair Gary Gensler has directed the division of enforcement to send âsweep lettersâ to a particular sector of the crypto community designed to âjam them into a violation that is allegedly unconstitutional.â
Those failing to respond to supposedly voluntary information requests would, in the words of the SEC, face a âbloodbath.â Senator Emmer proceeded to accuse the agency of dissolving the division designed to craft crypto regulations.
âThe SEC is hellbent on expanding the size of its crypto enforcement division using enforcement to unconstitutionally expand its jurisdiction,â he added.
âUnder Chair Gensler, the SEC has become a power-hungry regulator, politicizing enforcement, baiting companies to âcome in and talkâ to the Commission, then hitting them with enforcement actions, discouraging good-faith cooperation.â
Lummis-Gillibrand bill in limbo
A recent ray of light in the form of the proactive Lummis-Gillibrand bill is unlikely to be voted upon this year. Speaking to Bloomberg on July 19, Senator Lummis said that the wide-ranging scope of the legislation may make it difficult for lawmakers to digest quickly. Therefore, the Senate is unlikely to vote on it before the end of 2022.
Gary Gensler has repeatedly criticized the bill claiming that it is a threat to the $100 trillion traditional finance sector. He wants the SEC to have sole jurisdiction over digital assets so that he can regulate them the same as securities and stocks.