Congressman Tom Emmer has defended the cryptocurrency industry against SEC Chairman Gary Gensler's claims of widespread noncompliance. Emmer's statement follows recent legal victories by crypto firms against the securities regulator.
U.S. Congressman Tom Emmer (R-MN) has once again voiced his disagreement with Securities and Exchange Commission (SEC) Chairman Gary Gensler's characterization of the cryptocurrency industry. Emmer's statement comes in response to recent legal developments where judges ruled in favor of cryptocurrency companies in cases against the securities regulator.
In a statement posted on the social media platform X, Congressman Emmer pointed out that the SEC has faced setbacks in legal battles involving Ripple Labs and Grayscale Investments. Emmer emphasized:
"We will see how pending litigation plays out, but it should be increasingly obvious to policymakers that, despite Gary Gensler's mass marketing campaign, crypto is not an industry 'rife with noncompliance.'"
In July, District Judge Analisa Torres issued a partial ruling favoring Ripple Labs in a case brought by the SEC related to the sale of XRP tokens. The SEC is currently seeking to appeal this decision. More recently, the United States Court of Appeals for the District of Columbia Circuit ruled in favor of Grayscale Investments in a case against the SEC concerning the crypto asset manager's proposed bitcoin exchange-traded fund (ETF) conversion.
Following Grayscale's legal victory against the SEC, Congressman Emmer stated, "Our system of checks and balances holds the abusive Administrative State accountable."
SEC Chair Gary Gensler has faced criticism for adopting an enforcement-focused approach to regulating the cryptocurrency industry. He has repeatedly stated that, with the exception of bitcoin, all cryptocurrency tokens are considered securities.
Gensler asserted in July that the crypto space is "a field rife with fraud, rife with hucksters," emphasizing the presence of both well-intentioned actors and those engaging in fraudulent activities. He also stated in November that the cryptocurrency industry is "significantly non-compliant" and warned against noncompliance, highlighting potential harm to the public.
(Kevin Helms, Bitcoin News, 2023)