Minnesota Senator Tom Emmer has slammed United States Securities Exchange Commission (SEC) Chairman Gary Gensler for his flawed “crypto information-gathering efforts” and insisted Gensler should appear before Congress to explain the cost of his “regulatory failures.”
Emmer’s comments came from a Dec. 10 tweet He addressed his 67.500 Twitter followers and made mention of a bipartisan Blockchain Caucus email he co-authored for the SEC Chairman on March. 16.
Emmer said, “we now know Gensler’s crypto information-gathering efforts were ineffective” citing the collapses of the Terra ecosystem and bankrupt crypto platforms Celsius, Voyager and FTX.
He refused to give Congress the requested information in the letter. This would have informed Congress about the inconsistencies in Gensler’s approach that led him to miss Terra/Luna and Celsius, Voyager and FTX.
— Tom Emmer (@RepTomEmmer) December 9, 2022
“[Gensler] must testify before Congress and answer questions about the cost of his regulatory failures,” the Senator added.
He pointed out Gensler hasn’t made an appearance before the House Committee on Financial Services since Oct. 5. 2021 which left crypto media to fill the void for the SEC’s investigative failures according to Emmer.
Writers of the March Blockchain Caucus letter stated the SEC’s efforts in sourcing information from crypto companies were not “targeted, intentional, or clear” but rather “haphazard and unfocused.”
Emmer argued Gensler’s response — which came two months later — sidestepped several questions that inquired into the methods and processes the SEC would adopt in providing oversight to the digital asset industry.
“Instead, Gensler decided to explain to Congress the roles of the SEC’s Enforcement and Examination Divisions,” Emmer stated.
Emmer has previously expressed criticism toward the financial watchdog’s crypto oversight strategy.
“Congress shouldn’t have to learn the details about the SEC’s oversight agenda through planted stories in progressive publications,” he stated on Nov. 26.
Related: Republican lawmaker claims SEC chair was coordinating with FTX ‘to obtain regulatory monopoly’
A few days earlier on Nov. 23, Emmer tweeted Gary Gensler’s lack of leadership was a contributor to FTX’s catastrophic collapse which took effect in early November.
FTX’s failure is not a crypto-related failure. CeFi is the failure. @GaryGenslerSam Bankman-Fried. This is what matters. Check out the video below to see more thoughts pic.twitter.com/VYacafc0ZD
— Tom Emmer (@RepTomEmmer) November 22, 2022
Much of Gensler and the SEC’s efforts over the past years were focused on determining if cryptocurrencies fall within the definition of the Howey test and thus are subject to U.S. securities laws, most notably the ongoing Ripple case with its XRP (XRP) token
Emmer has long been a proponent of cryptocurrencies as a financial asset as far back as 2020 and takes a view that the U.S. government should clear the way to ensure that it doesn’t stifle innovation in the crypto industry.