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FameEX Hot Topics | US Lawmaker Condemns SEC's Lack of Clarity on Cryptocurrency Regulations and Raises Concerns About Chair Gensler's Personal Motives
2023-12-07 16:28:55
U.S. Congressman Tom Emmer, a Republican from Minnesota and the House Majority Whip, has strongly criticized the Securities and Exchange Commission (SEC) for its lack of clarity in regulating the cryptocurrency industry. His comments were made during a hearing of the House Subcommittee on Digital Assets, Financial Technology, and Inclusion, with the focus on fostering innovation in financial services through technology.
Emmer took to social media to express his concerns, stating, "The SEC has a deliberate policy preference to provide LESS clarity to the marketplace instead of more clarity. Complete disservice to our great capital markets." During the hearing, Emmer referred to a speech titled "Digital Asset Transactions: When Howey Met Gary," delivered by William Hinman in June 2018 when he served as the director of the Division of Corporation Finance at the SEC. In this speech, Hinman discussed the nuanced nature of tokens, explaining how they could transition from being classified as securities to non-securities. Importantly, Hinman also explicitly stated that Ethereum's cryptocurrency, ether (ETH), was not a security.
Emmer highlighted that Valerie A. Szczepanik, the director of the SEC's Strategic Hub for Innovation and Financial Technology (Finhub), had reviewed Hinman's draft speech. Szczepanik had commented that providing "less detail in a speech is better because the concept of a token morphing from a security to a non-security was a new concept and would generate a lot of discussions." During the hearing, Emmer raised a crucial question about whether Finhub had issued any guidance on how security laws apply to cryptocurrencies since Chair Gensler assumed office. Szczepanik did not provide a clear response. Emmer implied that the SEC's approach seemed to involve rulemaking through enforcement actions rather than providing the crypto industry with clear regulatory guidelines. Emmer further pressed Szczepanik by asking if she still believed that ether was not a security, as indicated in Hinman's 2018 speech. However, Szczepanik declined to comment, citing ongoing litigation as the reason for her inability to discuss specific assets. In conclusion, Emmer expressed his concerns that the SEC was not adhering to the law, resulting in numerous legal defeats. He also questioned whether Chair Gensler's positions were motivated by personal goals rather than a commitment to the law. Emmer has consistently criticized the SEC's enforcement-centric approach to crypto regulation and has previously supported legislation seeking to remove Gary Gensler from his position as the chair of the SEC. Additionally, Emmer introduced amendments aimed at limiting the SEC's authority to carry out enforcement actions against the crypto industry. In November, he urged Congress to allocate resources to attract more cryptocurrency-related activities to the United States, emphasizing the potential benefits for national security. Emmer's criticisms reflect the ongoing debates and challenges surrounding cryptocurrency regulations in the United States. Lawmakers and regulators are working to strike a balance between fostering innovation and protecting investors in this rapidly evolving industry. Disclaimer: The information provided in this section is for informational purposes only, doesn't represent any investment advice or FameEX's official view.
