SEC Comes Under Fire by US Lawmakers for Its Crypto “Witch-hunt”

Updated:

The US Securities and Exchange Commission (SEC) has come under fire by US lawmakers for its obsession with crypto regulation enforcement. This critique comes after the regulatory watchdog announced that it had almost doubled the size of its cryptocurrency enforcement unit.

On Tuesday, some lawmakers and SEC Commissioner Hester Peirce criticized the Commission for its aggressive efforts in the crypto industry.

Peirce, popularly called “crypto mom” in the cryptocurrency community due to her pro-crypto stance, commented on the SEC’s tweet about its crypto endeavors, noting:

“The SEC is a regulatory agency with an enforcement division, not an enforcement agency. Why are we leading with enforcement in crypto?”

Meanwhile, Congressman Patrick McHenry (Republican-North Carolina) also took to Twitter to note that SEC Chair Gary Gensler’s enforcement action “is stifling American innovation.” McHenry added: “If the US wants to lead the deployment of the next generation of internet technology, we must provide clear, thoughtful rules of the road for the digital asset ecosystem.”

Also, Rep member Warren Davidson (Republican-Ohio) questioned Gensler’s approach to creating value, tweeting: “It seems Gary Gensler is testing the labor theory of value at the SEC.” He added: “The more labor, the more value created? Nope. It’s a fallacy in economics and in regulation.”

Rep Tom Emmer (Republican-Minnesota) also took a swing at the SEC chair, tweeting: “I wonder how many taxpayer dollars are being wasted in Gary Gensler’s personal crusade against the crypto industry?”

Representative Bill Huizenga (Republican-Minnesota) added to Rep. Emmer’s comments, noting:

“Congress should not cede its authority to Gary Gensler. The SEC’s desire to use regulation by enforcement to provide ‘clarity’ for digital asset market participants is a power grab. We need responsible solutions, not edicts from bureaucrats.”

SEC and Its Growing Basket of Court Cases

Over the past months, the SEC has doubled down on its regulatory presence in the crypto space and has dragged several cryptocurrency companies to court in controversial circumstances.

 

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Azeez Mustapha

Azeez Mustapha is a trading professional, currency analyst, signals strategist, and funds manager with over ten years of experience within the financial field. As a blogger and finance author, he helps investors understand complex financial concepts, improve their investing skills, and learn how to manage their money.