SEC Chairman Gary Gensler is a “Bad Faith Regulator,” According to Congressman Tom Emmer

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Last Updated on April 8, 2023 by Bitfinsider

Congressman Tom Emmer, who supports cryptocurrencies, has criticized Gary Gensler, the chairman of the Securities and Exchange Commission (SEC), for his approach to regulating cryptocurrencies and called him a “bad faith regulator.”

Emmer questioned Gensler’s management of the cryptocurrency sector on the Unchained podcast, which is hosted by author and crypto journalist Laura Shin, on April 7.

Emmer cited Coinbase as an example, which, prior to receiving a Wells notice from the SEC in March, was actively attempting to cooperate with the regulator by, among other things, requesting compliance comments on staking products.

“Gary Gensler might have an open door, but it is an enter-at-your-own-risk door because what he does is, despite several meetings over several months, Gary Gensler’s SEC refused to provide feedback,” he said. He further added: “And instead, after all these meetings and nothing happening, the SEC slapped Coinbase with a Wells Notice regarding the very issues on which Coinbase was asking for their feedback.”

Since Gensler assumed control of the SEC in April 2021, he has frequently argued that the organization has an amicable “open door policy” and urged cryptocurrency firms to register with the SEC in order to remain in compliance with securities law.

This is partly because of his assertion that, aside from Bitcoin, almost all cryptoassets fall within the category of securities. So, the SEC should be primarily responsible for regulating this industry.

Despite this, Coinbase CEO Brian Armstrong has repeatedly emphasized how challenging working with the SEC can be. Jesse Powell, a former CEO of Kraken, and other figures have expressed similar views.

The apparent anti-crypto “regulation by enforcement” stance coming from the SEC and the US government has been a major concern for many in the crypto world.

In response to this, Emmer said: “This is clearly not the way the government should be serving Americans, and that it sends a clear message, I believe, to the broader crypto community, and that directly is ‘Gary Gensler is not regulating in good faith.”

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