Mon. Dec 6th, 2021

A senior Republican has slammed Gary Gensler, chairman of the Securities and Exchange Commission, over his efforts to regulate cryptocurrencies while defenders increase their opposition to various regulatory proposals.

Tom Emmer, a Minnesota representative and co-chair of a group of lawmakers interested in blockchain, said he believes Gensler is exceeding his authority in his efforts to expand the SEC’s role in regulation. cryptocurrencies.

Bucket’s intervention is part of a broader move by supporters of cryptocurrencies to counter Democrats’ efforts to increase oversight of the $ 2 tonne market.

“All regulators want more jurisdiction, and I can not blame them for that,” Emmer said in an interview with the Financial Times. “But I think Gary Gensler’s vision is much broader, and honestly it has a negative impact – and possibly a very big negative impact – on retail investors and opportunities that entrepreneurs and innovators can offer.”

Trading in cryptocurrencies and cryptocurrencies has increased sharply over the past few years, helping crypto exchange platforms such as Coinbase to reach millions of dollars in valuations.

But as investment in the area increased, regulatory scrutiny increased, with regulators warning of the risk of using cryptocurrencies to carry out fraud and money laundering.

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Gensler told Congress on Tuesday that he wanted crypto-platforms registered with the SEC, adding: “At the moment [investors] does not have the benefit of the basic bargain that we protect people from fraud and manipulation. . . People are going to get hurt. ”

Emmer told the FT: ‘I do not agree [Gensler] seriously when he suggests that almost all of these things [crypto products] are securities. I think the vast majority of cryptocurrency deals or related deals are actually currencies or goods. The SEC is not involved.

‘If the SEC considered one of these coins as a security, the value of the token would decrease. And the retail investors will be seriously injured – this is the exact opposite of its mission and its authority. ”

Last month Coinbase abandon a plan to launch a new digital asset lending product known as Lend after the SEC warned it would take legal action against such a move.

Other defenders of cryptocurrencies have also started pushing back. Hester Peirce, one of two Republicans in the SEC, told the FT earlier this year that she was worried that Gensler would fuel innovation with its pursuit of new regulation.

Earlier this year, pro-crypto campaign group Fight for the Future organized a public print campaign to counter a $ 1.2-tonne double-entry infrastructure bill that would force crypto exchanges to report transactions to U.S. tax authorities. According to the organization, the campaign generated 40,000 calls to lawmakers and 10,000 tweets.

Digital asset companies have also set up a series of new lobbying organizations to argue their case on Capitol Hill. Perianne Boring, president of the Chamber of Digital Commerce, one of the lobbying organizations, said: “As the industry grows and the business model becomes more complex, the industry needs to engage more with legislators.”

Lobbyists have found a receptive audience in Emmer’s blockchain caucus, formed by Mick Mulvaney, the former Republican congressman and chief of staff of former President Donald Trump, who now advises the Chamber of Commerce.

In recent months, members of the caucus, which covers the political spectrum of Liberal Democrat Ro Khanna to shut down Trump’s ally Matt Gaetz, have proposed several bills that will make it easier to trade cryptocurrency.

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