Rep. Tom Emmer Proposes Amendment to Restrict SEC’s Authority Over Cryptocurrency Regulation

On September 8, United States Representative Tom Emmer, who also serves as the Majority Whip in the U.S. House of Representatives, took a significant step in his ongoing critique of the U.S. Securities and Exchange Commission’s (SEC) role in the cryptocurrency industry. Emmer sponsored an appropriations amendment aimed at restricting the SEC’s ability to allocate funds for digital asset enforcement.

In a pointed statement, Emmer directed his criticism at SEC Chair Gary Gensler, accusing him of exceeding his authority, a move he believes has adverse implications for the American populace. Emmer urged Congress to use the available mechanisms and established procedures to prevent any potential misuse of taxpayer funds by Gensler and the SEC.

It’s worth noting that Representative Emmer has previously joined forces with fellow lawmakers to co-sponsor several bills aimed at enhancing regulatory transparency in the United States.

The appropriations amendment introduced by Emmer will place limitations on the SEC’s expenditure of funds for digital asset enforcement until comprehensive rules and regulations governing cryptocurrencies are in place. The absence of clear cryptocurrency regulations has led to concerns about the SEC’s substantial financial outlay in legal disputes with various crypto entities. Emmer expressed worry that this could effectively turn taxpayer funds into a weapon, a situation he is determined to prevent.

In a separate legislative effort earlier this year, Emmer introduced the Blockchain Regulatory Certainty Act. This act seeks to provide clarity regarding the classification of blockchain developers and service providers, asserting that they should not be considered money transmitters since they do not hold consumer funds in custody. The bill also establishes a crucial distinction between custody providers and non-custody providers. This differentiation is intended to alleviate unnecessary compliance burdens on non-custodial service providers, ultimately fostering innovation within the United States.

Emmer’s proposed legislation received support from prominent figures in the blockchain industry, including Kristin Smith, the CEO of the Blockchain Association, and Sheila Warren, the CEO of the Crypto Council. Furthermore, Emmer has thrown his support behind Representative Warren Davidson’s SEC Stabilization Act, which aims to remove Gary Gensler from his position as SEC chair, aligning with his continued efforts to address what he perceives as regulatory overreach in the cryptocurrency space.

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