On September 8, United States Representative Tom Emmer, the Majority Whip of the U.S. House of Representatives, sponsored an appropriations amendment aimed at restricting the U.S. Securities Exchange Commission’s (SEC) use of funds for digital asset enforcement.
Emmer, a vocal critic of the SEC’s actions in the cryptocurrency industry, particularly the leadership of SEC Chair Gary Gensler, alleged that Gensler had exceeded his authority, resulting in adverse consequences for the American people.
Emmer urged Congress to employ available methods and proper procedures to prevent potential misuse of taxpayer funds by Gensler and the SEC.
Emmer’s history includes co-sponsoring several bills designed to improve regulatory transparency within the United States.
He asserted that Gary Gensler had abused his authority to expand the Administrative State, to the detriment of the American people, emphasizing the necessity for Congress to employ all available tools, including the appropriations process, to restrain Gensler from further leveraging taxpayer dollars.
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The appropriations amendment Emmer introduced will limit the SEC’s use of funds for digital asset enforcement until comprehensive rules and regulations are established.
Concerns have arisen due to the absence of cryptocurrency regulations, with Emmer suggesting that the SEC’s substantial expenditures on legal disputes with numerous crypto entities might constitute a “weaponization” of taxpayer funds.
In a separate legislative move, Emmer introduced the Blockchain Regulatory Certainty Act, which clarifies that blockchain developers and service providers should not be classified as money transmitters, as they do not hold consumer funds in custody.
This distinction is intended to relieve non-custody providers from unnecessary compliance burdens that could hinder innovation in the United States, ensuring that validators, miners, and other noncustodial service providers are not grouped together with custody providers.
Prominent figures in the blockchain sector, including Blockchain Association CEO Kristin Smith and Crypto Council CEO Sheila Warren, voiced their support for Emmer’s proposed legislation.
Additionally, Emmer threw his support behind Representative Warren Davidson’s SEC Stabilization Act, which aims to remove Gary Gensler from his position as SEC chair.
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