tom emmer

Congressman Tom Emmer says SEC chair Gary Gensler is a ‘bad faith regulator’

The crypto-friendly congressman questioned Gary Gensler’s supposed ‘open door policy” suggesting that he “might have an open door, but it is an enter-at-your-own-risk-door.”

Crypto-friendly Congressman Tom Emmer has slammed U.S. Securities and Exchange Commission (SEC) chair Gary Gensler for his approach to cryptocurrency regulation, labeling him as a “bad faith regulator.”

During an April 7 appearance on the Unchained podcast hosted by author and crypto journalist Laura Shin, Emmer didn’t mince his words as he questioned Gensler’s oversight on the crypto sector:

“This guy in my mind, is a bad-faith regulator. He’s been blindly spraying the crypto community with enforcement actions while completely missing the truly bad actors.”

Emmer pointed to the example of Coinbase, which before being slapped with a Wells Notice by the SEC in March, was actively trying to work with the agency by getting compliance feedback on staking products, among other things.

“Gary Gensler might have an open door, but it is an enter-at-your-own-risk door, because what he does is, despite several meetings over several months, Gary Gensler’s SEC refused to provide feedback,” he said, adding that:

“And instead, after all these meetings and nothing happening, the SEC slapped Coinbase with a Wells Notice regarding the very issues on which Coinbase was asking for their feedback.”

Since Gensler took over the helm of the SEC back in April 2021, he has repeatedly suggested that the agency has an amicable ‘open door policy’ and called on crypto firms to register with the SEC to maintain compliance with securities law.

This is mostly down to his view that nearly all crypto assets apart from Bitcoin (BTC) are classified as securities, and thus the sector should be primarily regulated by the SEC.

Related: US lawmaker accuses FDIC of using banking instability to attack crypto

Despite this, Coinbase CEO Brian Armstrong has highlighted the difficulty of dealing with the SEC on several occasions, while other figures such as Kraken CEO Jesse Powell have echoed similar sentiments.

A major issue raised by many in the crypto community is the apparent anti-crypto-focused ‘regulation by enforcement’ approach stemming from the SEC and broader U.S. government.

Commenting on such, Emmer ultimately stated:

“This is clearly not the way the government should be serving Americans, and that it sends a clear message, I believe, to the broader crypto community, and that directly is ‘Gary Gensler is not regulating in good faith’.”


Congressman Tom Emmer says SEC chair Gary Gensler is a ‘bad faith regulator’

The crypto-friendly congressman questioned Gary Gensler’s supposed “open door policy,” suggesting that he “might have an open door, but it is an enter-at-your-own-risk-door.”

Crypto-friendly Congressman Tom Emmer has slammed United States Securities and Exchange Commission (SEC) chair Gary Gensler for his approach to cryptocurrency regulation, labeling him a “bad faith regulator.”

During an April 7 appearance on the Unchained podcast hosted by author and crypto journalist Laura Shin, Emmer didn’t mince his words as he questioned Gensler’s oversight on the crypto sector:

“This guy in my mind, is a bad-faith regulator. He’s been blindly spraying the crypto community with enforcement actions while completely missing the truly bad actors.”

Emmer pointed to the example of Coinbase, which before being slapped with a Wells notice by the SEC in March, was actively trying to work with the agency by getting compliance feedback on staking products, among other things.

“Gary Gensler might have an open door, but it is an enter-at-your-own-risk door because what he does is, despite several meetings over several months, Gary Gensler’s SEC refused to provide feedback,” he said, adding that:

“And instead, after all these meetings and nothing happening, the SEC slapped Coinbase with a Wells Notice regarding the very issues on which Coinbase was asking for their feedback.”

Since Gensler took over the helm of the SEC in April 2021, he has repeatedly suggested that the agency has an amicable “open door policy” and called on crypto firms to register with the SEC to maintain compliance with securities law.

This is primarily due to his view that nearly all crypto assets apart from Bitcoin (BTC) are classified as securities. Thus the sector should be principally regulated by the SEC.

Related: US lawmaker accuses FDIC of using banking instability to attack crypto

Despite this, Coinbase CEO Brian Armstrong has highlighted the difficulty of dealing with the SEC several times. Other figures, such as former Kraken CEO Jesse Powell, have echoed similar sentiments.

A major issue raised by many in the crypto community is the apparent anti-crypto-focused “regulation by enforcement” approach stemming from the SEC and the U.S. government.

Commenting on such, Emmer stated:

“This is clearly not the way the government should be serving Americans, and that it sends a clear message, I believe, to the broader crypto community, and that directly is ‘Gary Gensler is not regulating in good faith.’”


CBDCs could be ‘easily weaponized’ to spy on US citizens: Congressman

Congressman Tom Emmer made the anti-central bank digital currency comments to an audience at the Cato Institute, a libertarian think tank in Washington.

United States Representative Tom Emmer believes the launch of programmable central bank digital currency in the country could strip American citizens of their financial privacy.

Speaking on March 9 at the Cato Institute, a Washington D.C.-based libertarian think tank, Emmer explained that the programmable CBDC would be “easily weaponized” as a spying tool to “choke out politically unpopular activity,” among other things:

“As the federal government seeks to maintain and expand financial control to which it has grown accustomed, the idea of the central bank digital currency has gained traction within the institutions of power in the United States as a government-controlled programmable money that can be easily weaponized into a surveillance tool.”

The Minnesota congressman introduced the CBDC Anti-Surveillance Act on Feb. 22 to halt the progress of the Digital Dollar Project, which has seen considerable developments in how it would be used since the second version of its white paper was released in mid-January.

“Recent actions from the Biden Administration make it clear that they are not only itching to create a digital dollar but they are willing to trade Americans’ right to financial privacy for the surveillance-style CBDC,” he added.

Emmer suggested that the blockchain-enabled “ownership economy” is “threatening” many bureaucrats in Washington, as it “shifts economic power from centralized institutions back into the hands of the people.”

While the latest Federal Reserve discussion paper explained that it would only issue the CBDC in the context of “broad public and cross-governmental support,” Emmer and many others are concerned with the potential dangers that could ensue:

“It not only tracks transaction level data down to the individual user but also the ability to program the CBDC to choke out politically unpopular activity.”

Related: ‘Programmable money should terrify you’ — Layah Heilpern

Emmer also argued that decentralized cryptocurrencies can serve as a solution to the mismanagement of the U.S. monetary system and restore many of the “American values” that led the nation to become an economic powerhouse in the 20th century — privacy, individual sovereignty and free markets.

He added that by even experimenting with CBDCs, the U.S. is going against these values:

“Nothing could be more dangerous than adhering to a manufactured sense of urgency like this and ultimately developing a CBDC that is not open, permissionless and private.”

US lagging on CBDCs could spell ‘trouble’ — Crypto Council policy head

A former CIA analyst doesn’t believe the Chinese-led CBDC movement on the global stage will replace the U.S. dollar but may cause geopolitical headaches.

Yaya Fanusie, a cryptocurrency researcher and former CIA analyst, believes the United States government’s relatively slow start on central bank digital currency (CBDC) development may result in it losing its grip on the global financial system.

Fanusie, the policy head at crypto advocacy group, the Crypto Council for Innovation, explained in a Feb. 28 Bloomberg interview, that sanctioned states are looking to transact on financial infrastructure that isn’t controlled or heavily influenced by the U.S. to move funds more freely cross-borders.

Fanusie explained that state-issued CBDCs could be a part of the financial infrastructure that will be globally adopted. If the U.S. has little influence over these new standards, it “impacts U.S economic statecraft.”

If the U.S. continues to sit on the “sidelines” and lag on CBDC adoption, Fanusie believes this may spell “trouble” and cause unforeseen “geopolitical implications” over time:

“The potency of our sanctions power comes from the centrality of the U.S. to the financial global infrastructure. So if that shifts a little bit, it doesn’t mean that China is going to take over or that the yuan is going to displace the dollar but if there’s a viable new rail where sanctioned actors can now transact, that’s trouble.”

The U.S. Federal Reserve has, however, recently made progress on its CBDC — the digital dollar project — releasing the latest version of its white paper on Jan. 18:

However, the Federal Reserve has not received approval from the U.S. government to proceed with the CBDC project.

Fanusie highlighted that China has benefited from a near-first mover advantage, having explored CBDCs since 2014 and launching the pilot version of its digital yuan on Jan. 4, 2022, which Fanusie says has processed “millions of transactions” across “millions of wallets,” so far.

Fanusie added that there is an “array of pilots” testing out smart contracts to add programmability to the CBDC, and that China is helping other countries to adopt similar standards.

He added that an unspoken “race” is possibly going on in the CBDC frontier as nations look to gain a geopolitical edge.

“That’s happening whether we want to like it or not.”

However, previous commentators on the CBDC race between China and the U.S. have said that China’s CBDC ambition is purely about domestic dominance rather than trying to beat the U.S. dollar.

Related: What are CBDCs? A beginner’s guide to central bank digital currencies

CBDCs run on state-controlled ledgers are reportedly more efficient and easier to use in some cases than decentralized public networks, such as Bitcoin and Ethereum.

However, some opponents of CBDCs believe states are adopting blockchain-powered CBDCs to maintain a degree of financial control over their citizens.

Part of the pushback in the U.S. recently came from pro-crypto U.S. Congressman Tom Emmer, who recently introduced the CBDC Anti-Surveillance State Act to protect the financial privacy of U.S. citizens from actions by the Federal Reserve:


Crypto industry leaders ‘scared of a strong SEC’ — Senator Warren

Senator Elizabeth Warren claims the Trump Administration “gave a green light” to a cryptocurrency market full of junk tokens, rug pulls and Ponzi schemes.

United States senator and crypto skeptic Elizabeth Warren wants the Securities Exchange Commission (SEC) to “double down” on its crypto enforcement efforts, highlighting that the cryptocurrency industry is running “scared” for what’s to come next.

Warren’s comments came during an interview with the American Economic Liberties Projects on Jan. 25.

The senator opined that since Gensler was sworn in as SEC chairman in April 2021, the Commission “has made a good start” on fixing some of the problems created by the former SEC leaders under the Trump Administration.

Senator Elizabeth Warren wants Congress to deploy more authorities and resources to help the SEC crackdown on the cryptocurrency industry participants. Source: Reuters

Warren claimed that the previous SEC administration “essentially gave the green light” to open up a cryptocurrency market “full of junk tokens, unregistered securities, rug pulls, Ponzi schemes, pump and dumps, money launderings and sanctions evasions.”

But that’s now being cleaned up under Gensler’s leadership, which has industry leaders scared, according to Warren:

“It appears that the commission is still ramping up. That is why the industry is scared of a strong SEC, and that’s why it is spending millions of dollars each year lobbying to escape SEC oversight.”

The crypto critic also pointed the finger at crypto lending companies, celebrity promoters and inside traders whom she said have misled andeceived retail investors.

But Warren didn’t stop there.

The Massachusetts politician said the SEC needs to “use the full force of its regulatory powers” in order to “reign in the frauds inflicted on American consumers.”

“The SEC should double down and use its tools to enforce the rules, and where the SEC needs more cops on the beat, then Congress needs to step up with the resources and the new authorities that are needed to ensure the SEC can do its work at full strength in every corner of the crypto market.”

The senator also called on U.S. regulators in the banking and environment sectors to impose more accountability measures against some of the bigger players in the cryptocurrency industry.

“The commission has been loud and clear that crypto doesn’t get a pass for longstanding security laws that protect investors and ensure the integrity of our financial markets,” she added.

Related: Congress may be ‘ungovernable,’ but US could see crypto legislation in 2023

However, not all U.S. senators appear to have put Gensler’s SEC on the same pedestal.

New York Senator Ritchie Torres asked the U.S. Government Accountability Office on Dec. 6 to conduct an investigation into the SEC’s failure to examine and expose FTX’s alleged fraud months before the cryptocurrency exchange collapsed:

“One cannot have it both ways, asserting authority while avoiding accountability.”

A few days later, on Dec. 10, Minnesota Senator Tom Emmer slammed the SEC and Gensler for his flawed “crypto information-gathering efforts” following FTX’s meltdown, saying that he should have to explain the cost of his “regulatory failures” to Congress.

US Senate banking chair floats possibility of banning crypto

Despite suggesting a possible ban, U.S. Senator Sherrod Brown stated it would be “very difficult” to do so because activity “would go offshore.”

United States Banking Committee chairman Sherrod Brown has suggested that the Securities Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) should perhaps consider a ban on cryptocurrencies.

Brown’s comments were made during a Dec. 18 appearance on NBC’s “Meet the Press,” although the senator quickly added that a ban would be difficult to enforce:

“We want them to do what they need to do at the same time, maybe banning it, although banning it is very difficult because it would go offshore, and who knows how that would work.”

In response to a host’s earlier question about Senator Jon Tester, who believes cryptocurrencies should be banned, Brown said thathe shares the “same thought.”

The Ohio representative saidthat over the last 18 months he has been “educating” his colleagues and the public on the dangers of cryptocurrencies, calling for imminent and aggressive action to be taken.

“I’ve already gone to the Treasury and the Secretary and asked for a government-wide assessment through all the various regulatory agencies [….] The SEC has been particularly aggressive, and we need to move forward that way and legislatively if it comes to that,” he added.

Brown cited FTX’s shock collapse as an example of why a ban may be worth considering but added it “is only one huge part of this problem.”

He argued cryptocurrencies are “dangerous” and a “threat to national security,” citing North Korean cybercriminal activity, drug trafficking, human trafficking and the financing of terrorism as some of the problems they’ve exacerbated.

The Banking Committee chairman has expressed his skepticism toward crypto for over a year now, having most recently voiced concerns on the matters of stablecoin issuance as well as cryptocurrency advertising and marketing campaigns.

Brown released a Nov. 30 statement calling for an “all-of-government” approach to regulate the industry and on Dec. 13 applauded the U.S. Department of Justice for filing criminal charges against former FTX CEO Sam Bankman-Fried, who’s currently behind bars in the Bahamas awaiting extradition to the U.S.

Related: US senator: There’s ‘no reason why’ crypto should exist

Not all of Senator Brown’s peers seem to share his thoughts.

Senator Tom Emmer stated on Nov. 23 that FTX’s fall wasn’t a “crypto failure” but rather a failure caused by centralized actors.

Emmer also holds the view that crippling regulation would stifle industry innovation in the U.S., causing it to lose its position of global market dominance — something that many believe to be already unfolding.

It should also be noted that the incoming chairman of the House Committee on Financial Service, Patrick McHenry, is pro-crypto. This week he called for a delay on crypto tax changes in order to seek more clarification on the original, “poorly drafted” tax provision.

Rep. Tom Emmer mulls bringing back bill aimed at reducing crypto red tape

Tom Emmer is considering reintroducing a bill that removes the requirement for entities to be registered as money transmitters even if they don’t handle customer assets.

Crypto-friendly Congressman Tom Emmer is considering re-floating a bipartisan bill that would lift the requirement for certain crypto businesses and projects to register as Virtual Asset Service Providers (VASPs) in the wake of the FTX collapse. 

The bill titled “Blockchain Regulatory Certainty Act” was led by Republican Emmer and Democratic Congressman Darren Soto. It was tabled during the 117th Congress on Aug. 17, 2021, and did not make it any further down the line.

Emmer may be liking his chances a bit more the second time around, given the current climate in which the U.S. government is scrambling to get regulation off the ground to prevent another FTX-style disaster.

Tweeting on Dec. 15, Emmer noted that it’s “probably a good time” to re-introduce the bill, adding that:

“The bill asserts that blockchain entities that never custody consumer funds are not money transmitters… providing necessary legal certainty to ensure the future of crypto reflects American values.”

The bill itself aims to set out guidelines that remove certain hurdles and requirements for “blockchain developers and service providers” such as miners, multi-signature service providers and decentralized finance (DeFi) platforms.

It was put forward in response to a June 2021 draft guidance from the Financial Action Task Force (FATF) that would have expanded the definition of virtual asset services providers to include “any provider that may develop or operate a DeFi platform, even if they have no interaction with users.”

While a number of U.S. politicians attacked crypto at the House Financial Services Committee hearing on FTX’s collapse this week, Emmer has notably praised the crypto community for using blockchain tech to uncover key info on the firm’s operations.

Bills, bills everywhere

On the other end of the political spectrum, crypto-skeptic Senator Elizabeth Warren introduced the Digital Asset Anti-Money Laundering Act of 2022 on Dec. 14, alongside Senator Roger Marshall.

The bill essentially seeks to stop financial institutions from using privacy tools such as crypto mixers and mandate crypto firms to follow the same money-laundering rules as banks, a well as regulating crypto kiosks (ATMs).

Related: US senator calls on SEC’s Gensler to answer for ‘regulatory failures’

It would also require miners, custodial and self-custodial wallet providers to implement Know Your Customer (KYC) controls.

Senator Cynthia Lummis, a known hodler and Bitcoin proponent, has of course criticized the bill, arguing that such KYC requirements won’t work within the context of crypto.

On Dec. 14, Lummis herself also outlined that she intends to re-introduce a bill that would hand over most authority over crypto to the Commodity Futures Trading Commission (CFTC), as opposed to the Securities and Exchange Commission, which Warren among others are pushing for.

US senator calls on SEC’s Gensler to answer for ‘regulatory failures’

Republican Senator Tom Emmer has long been a critic of Gary Gensler and the U.S. Securities Exchange Commission’s cryptocurrency oversight strategy.

Minnesota Senator Tom Emmer has slammed U.S. Securities Exchange Commission (SEC) Chairman Gary Gensler for his flawed “crypto information-gathering efforts,” saying that Gensler should appear before Congress to explain the cost of his “regulatory failures.”

Emmer’s comments came in a Dec. 10 tweet to his 67,500 Twitter followers, where he referred to a bipartisan Blockchain Caucus letter that he co-authored to the SEC chairman on March 16.

Emmer said that “we now know Gensler’s crypto information-gathering efforts were ineffective,” citing the collapses of the Terra ecosystem and crypto platforms Celsius, Voyager and FTX.

“[Gensler] must testify before Congress and answer questions about the cost of his regulatory failures,” the senator added.

He pointed out that Gensler hasn’t appeared before the House Committee on Financial Services since Oct. 5. 2021, leaving crypto media to fill the void for what Emmer described as the SEC’s investigative failures.

Writers of the Blockchain Caucus letter stated the SEC’s efforts in sourcing information from crypto companies were not “targeted, intentional, or clear” but rather “haphazard and unfocused.”

Emmer argued that Gensler’s response — which came two months later — sidestepped several questions enquiring into the methods and processes that the SEC would adopt in providing oversight to the digital asset industry.

“Instead, Gensler decided to explain to Congress the roles of the SEC’s Enforcement and Examination Divisions,” Emmer stated.

Emmer has previously expressed criticism toward the financial watchdog’s crypto oversight strategy.

“Congress shouldn’t have to learn the details about the SEC’s oversight agenda through planted stories in progressive publications,” he stated on Nov. 26.

Related: Republican lawmaker claims SEC chair was coordinating with FTX ‘to obtain regulatory monopoly’

A few days earlier, on Nov. 23, Emmer tweeted that Gensler’s lack of leadership was a contributor to FTX’s catastrophic collapse earlier in the month.

Much of Gensler and the SEC’s efforts over the past years were focused on determining if cryptocurrencies fall within the definition of the Howey test and thus are subject to U.S. securities laws, most notably the ongoing Ripple case with its XRP (XRP) token

Emmer has been a proponent of cryptocurrencies as far back as 2020, taking the view that the U.S. government should clear the way to ensure that it doesn’t stifle innovation in the crypto industry.