U.S. lawmakers are issuing a warning to the chairman of the U.S. Securities and Exchange Commission (SEC), saying he may soon hear from Congress.
In a recent announcement, Republican Senator Bill Haggerty of Tennessee said say that the SEC is arming itself to destroy an entire industry and tells Chairman Gary Gensler to anticipate explanations to members of Congress.
“The SEC is weaponizing their role to kill an industry. It is indefensible to allow a company to list publicly and then block their attempts to register. Gary Gensler, expect to hear from Congress.”
The SEC recently filed lawsuits against both Coinbase and Binance, two of the largest crypto exchange platforms in the world, alleging violations of securities laws.
In March, Haggerty and other congressmen wrote a letter demanding answers from US regulators for their enforcement actions against crypto companies.
At the time, the senators compared the actions of the regulators to that of Operation Choke Point, which they say was an initiative under the Obama administration to put pressure on legal financial institutions they were not fond of.
Another Republican Senator, Cynthia Lummis of Wyoming, issued a statement about the SEC suing Coinbase, saying the regulator has obstructed crypto exchanges from properly registering.
“The SEC has failed to provide a path for digital asset exchange registration, and worse, has failed to provide adequate legal guidance on what differentiates a security from a commodity. The SEC’s continued reliance on regulation through enforcement continues to hurt consumers.
True consumer protection requires creating a robust legal framework that exchanges can comply with, without pushing the industry offshore or into the shadows. Therefore, Congress must pass the Lummis-Gillibrand Responsible Financial Innovation Act.”
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