Senior Republicans have attacked US Securities and Exchange Commission President Gary Gensler in his attempts to regulate cryptocurrency, as their supporters have increased opposition to some of the regulatory proposals.
A Minnesota representative and co-chair of a group of lawmakers interested in blockchain, Tom Emer, said he believes Gensler has overstepped his authority in an attempt to regulate cryptocurrency.
Immer’s intervention is part of a broader move by cryptocurrency advocates to oppose Democrat-led attempts to increase control of the $ 2 trillion market.
“All regulators want more jurisdiction and I can’t blame them for that,” Emer said in an interview with the Financial Times, with a significant negative effect.
The trading of cryptocurrencies and related products has skyrocketed in recent years, helping cryptocurrency exchanges like Coinbase generate tens of billions of dollars.
However, as investment in the region increases, so does the regulatory scrutiny and regulatory authorities put in in guard against the dangers of using cryptocurrencies to commit fraud and money laundering.
Gensler told Congress on Tuesday that he would like to bring crypto platforms under the supervision of the SEC, saying, “We want to protect people from fraud and manipulation . retailers can get hurt.”
Emer commented on Gensler’s statements that he disagrees with him regarding all crypto products as “securities”, as he believes cryptocurrencies and related products are in reality currencies or materials prime and not securities, which makes them incompatible with the nature of the assets being registered with the SEC.
He believes that “if the SEC considers any of these currencies a security, the value of this symbol will decline and retail investors will be severely affected, and this is the opposite of its mission and authority.”
Last month, Coinbase ditched a plan to launch a new lending product asset digital media known as Lend after the Securities and Exchange Commission warned it would take legal action against tale move.
Other cryptocurrency advocates have also started to explode. Hester Pierce, a Republican with the Securities and Exchange Commission, said at the beginning of questyear of being concerned that Gensler may hinder innovation by pushing for new regulations.
At the beginning of quest’year, a campaign called Procrypt was organized to fight for the future of cryptocurrency, which opposes the $ 1.2 trillion bipartisan infrastructure law that would force cryptocurrency exchanges to report transactions to US tax authorities. The campaign resulted in 40,000 calls to lawmakers and 10,000 tweets, the organization said.
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