Minnesota Representative Tom Emmer called Gary Gensler, Chairman Securities and Exchange Commission on Sunday and demanded that he speak before Congress about how he regulates crypto.
“@GaryGensler must testify before Congress and answer questions about the cost of his regulatory failures,” he wrote in a thread on Twitter.
Emmer claimed that the SEC did not collect enough information from crypto firms to have prevented catastrophes such as the $32 Billion dollar collapse of FTX.
“We now know Gensler’s crypto information-gathering efforts were ineffective,” he stated.
He said that the SEC’s approach has been unclear and it has not provided useful insight. He referenced a letter sent to Gensler in March that asked specific questions about the financial watchdog’s policies and procedures—questions he said were sidestepped in Gensler’s response.
“[Gensler] 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,” he said.
Emmer also stated that the Congressional Blockchain Caucus, which he is co-chairs has been informed of SEC inquiries.
“Efforts to gather info on crypto companies were not targeted, intentional, or clear,” Emmer said. “Rather, SEC’s requests were random and unfocused.”
Gensler’s lack of transparency is ultimately hurting investors, Emmer stated. He pointed out that Gensler hasn’t made a public appearance before the House Financial Services Committee since October of last year.
“Gensler has repeatedly dodged Congress at the expense of investors… leaving us to learn about the SEC’s crypto investigations, like the one into FTX, through the media,” he said.
Emmer’s criticism of Gensler on Sunday wasn’t the first time the member of Congress has taken aim at the SEC Chairman.
Emmer in March Concerns raised about the SEC’s interactions with crypto companies. He was focused on the SEC’s information gathering then, too, but said at the time that the agency was stifling innovation with an “overburdensome” approach.
“Crypto startups must not be weighed down by extra-jurisdictional and burdensome reporting requirements,” he wrote in a subsequent Tweet. “We will ensure our regulators do not kill American innovation and opportunities.”
Last month, he also Weighed in On the implosion and future prospects of FTX. He described the company’s swift demise as not a failure of crypto but rather a failure of Sam Bankman-Fried, the exchange’s founder and former chief executive, as well as Gensler’s leadership.
Keep up to date with crypto news by receiving daily updates in your email.
