U.S. lawmaker Tom Emmer described the SEC chairman Gary Gensler as an “incompetent cop on the beat” who puts “everyday Americans in harm’s way and [pushes] American firms into the hands of the Chinese Communist Party.”
In an April 18 Twitter thread, Emmer highlighted several parts of Gensler’s appearance before the House Financial Services Committee — where he failed to appropriately answer the lawmaker’s questions.
Emmer rips into Gensler
Emmer said the SEC had “finalized ZERO rules for crypto companies to comply with” but has consistently brought enforcement actions against these firms.
According to Emmer, the regulatory chief was at the helm of the SEC affairs when the two most significant crypto fraud events occurred — the collapse of FTX and Terra Luna’s crash. Emmer noted that these events showed that Gensler was “doing nothing to stop these criminals before they defrauded Americans” despite meeting FTX at least twice before its collapse.
Besides that, Emmer said Gensler was regulating the crypto industry “inappropriately through public statements.” The lawmaker cited examples of previous Gensler statements where he urged crypto firms to “come in and register” with the SEC to buttress his point.
“[Gensler] often contradict[s] himself, which only instills further chaos in the marketplace.”
The lawmaker concluded that the “hostile regulatory environment” was pushing crypto firms abroad. Emmer said pushing the industry outside U.S. shores would not protect American investors — as evidenced by the FTX collapse.
“Existing SEC rules make no sense for blockchain-based companies, and following them will actually kill these businesses. Your regulatory style lacks flexibility and nuance.”
Meanwhile, the SEC chair reiterated that the Commission was trying to regulate the crypto industry into compliance to protect American investors.
Several crypto stakeholders have criticized Gensler’s appearance before the House Financial Services Committee for failing to address the major issues battling the industry.
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