Lawmaker Calls SEC Enforcement Actions Against Crypto Exchanges ‘Complete Contempt for Congress’

Lawmaker Calls SEC Enforcement Actions Against Crypto Exchanges 'Complete Contempt for Congress'

Several lawmakers have slammed the U.S. Securities and Exchange Commission (SEC) for regulating the crypto business by enforcement. One lawmaker says the regulator’s newest motion towards crypto change Coinbase “demonstrates a complete contempt for Congress which is in the process of developing a framework.” Another lawmaker said that if the regulatory framework have been in place, “the SEC wouldn’t have to take the actions that they’ve taken.”

Lawmakers Slam SEC and Chair Gary Gensler

The U.S. Securities and Exchange Commission (SEC) and Chair Gary Gensler have been closely criticized for regulating the crypto business by enforcement after the regulatory company took motion towards two main cryptocurrency exchanges this week.

The Nasdaq-listed crypto change Coinbase confronted a lawsuit from the SEC on Tuesday, whereas and its CEO, Changpeng Zhao (CZ), have been hit with 13 charges by the securities regulator a day earlier. The SEC labeled 12 crypto tokens as securities within the Binance lawsuit and several other extra within the Coinbase one.

U.S. Representative Ritchie Torres (D-NY), a member of the House Financial Services Committee that oversees the SEC, instructed Marketwatch on Wednesday:

The newest enforcement motion towards Coinbase is an egregious instance of regulation by enforcement … It demonstrates an entire contempt for Congress which is within the strategy of growing a framework.

The congressman added that Chairman Gensler’s present place on crypto displays a major departure from his earlier views on the expertise when he taught a course on blockchain and cash on the Massachusetts Institute of Technology (MIT) in 2018.

Torres described:

His view of the regulation has been always altering … Mr. Gensler has gone from a crypto cheerleader to a crypto skeptic … He’s portraying crypto because the villain with a view to painting himself as a political hero.

Several different lawmakers have equally criticized the SEC and Gensler for his or her enforcement-centric strategy to regulating the crypto business, together with Senators Cynthia Lummis (R-WY) and Bill Hagerty (R-TN). Congressman French Hill (R-AR), who chairs the House subcommittee on digital belongings, said Monday that the securities watchdog’s latest crackdown is a “cover your ass” transfer to distract from its failure to stop the collapse of crypto change FTX.

Last week, Hill and several other different lawmakers launched a discussion draft of laws to supply “a statutory framework for digital asset regulation intended to provide clarity, fill regulatory gaps, and foster innovation, while providing adequate consumer protections.”

Hill instructed CNBC in an interview on Wednesday: “Both the action on Coinbase, on Binance, and of course the infamous collapse of FTX last year, speak to me that we need this clear, concise, statutory, framework.” The congressman emphasised:

That’s why we’ve launched this invoice … If we had this invoice in place, then the SEC wouldn’t need to take the actions that they’ve taken.

What do you concentrate on the actions the SEC took towards Coinbase and Binance? Let us know within the feedback part under.

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