United States Senator Tom Emmer who is also an attorney and representative for Minnesota’s 6th congressional district has asked that Chairman of the Securities and Exchange Commission (SEC) Gary Gensler answer for his flawed “crypto information-gathering efforts.” Emmer wants the regulator chief to appear before Congress to explain his approach to regulating cryptocurrencies.
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According to a Twitter thread, Emmer claimed that Gensler has been dodging Congress citing that he has failed to appear before the House Financial Services since after October 5th, 2021 more than a year ago. Therefore, “@GaryGensler must testify before Congress and answer questions about the cost of his regulatory failures.”
Emmer faulted the SEC’s strategy of gathering information about crypto exchanges, saying that the method has failed. To further emphasize his point, he mentioned the crash of Celsius Network, Three Arrows Capital (3AC), Voyager Digital, and the most recent FTX implosion which has left the crypto industry in a mess.
“We now know Gensler’s crypto information-gathering efforts were ineffective,” he stated. Speaking of a letter which was sent to Gensler in March, Emmer said “He declined to provide Congress with the information requested in the letter, which would’ve informed Congress of the apparent inconsistencies in Gensler’s approach that caused him to miss Terra/Luna, Celsius, Voyager, and FTX.”
SEC Needs to Redirect its Focus
His response came two months later and instead of responding positively to the questions that were asked, he avoided dealing with them or even discussing them. Gensler brought up topics like the roles of the SEC’s Enforcement and Examination Division.
So far, many crypto community members have pointed out how the SEC’s method lacked focus, clarity, and precision. They said the method of gathering information was somewhat haphazard, unfocused, and unstable. The SEC chief had earlier commented on the fall of FTX, saying it is part of a bigger trend in the crypto industry.
“What we’ve seen in the last two days, if I can sort of step back from it a bit, it’s really part of a pattern of what we have seen over the past six or eight months,” Gensler said.
However, Emmer believes that the regulators are not doing enough. In many years, the SEC’s focus has been on issues like the ongoing lawsuit with Ripple and the one it won against LBRY and that is determining if a digital asset falls in the category of securities under the Howey test.
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