US legislators send letter questioning SEC’s approach towards crypto companies

Eight bipartisan members of the US House of Representatives have sent a letter to SEC Chairman Gary Gensler on Wednesday asking for clarity on the regulator’s approach towards crypto-related companies.

Tom Emmer, a Republican congressman from Minnesota, tweeted that his office has received “numerous tips” on SEC’s “overburdensome” requests for information from crypto and blockchain firms.

“My office has received numerous tips from crypto and blockchain firms that SEC Chair
@GaryGensler’s information reporting “requests” to the crypto community are overburdensome, don’t feel particularly… voluntary… and are stifling innovation,” the post read:

The letter, shared by Tom Emmer in a tweet, stated that while the regulatory body has the right to request information on a company’s operations, it shouldn’t be in a way that hinders innovation. The SEC is required to obtain information in line with the standards set by the Paperwork Reduction Act of the US law.

This is why I sent a bipartisan letter today to SEC Chair @GaryGensler with @RepDarrenSoto, @WarrenDavidson, @RepAuchincloss, @RepDonaldsPress, @RepJoshG, @RepTedBudd, and @RepRitchie regarding the SEC’s crypto information seeking process. pic.twitter.com/8HcTgZA0XL

— Tom Emmer (@RepTomEmmer) March 16, 2022

Noting the fact that the SEC may be asking for details that fall out of its jurisdiction, the letter pointed out:

“It appears there has been a recent trend towards employing the Enforcement Division’s investigative functions to gather information from unregulated cryptocurrency and blockchain industry participants in a manner inconsistent with the Commission’s standards for initiating investigations.”

The letter was signed by the members of the bipartisan Congressional Blockchain Caucus, a group created by the US HoR to study and understand blockchain technology. They have now submitted 13 questions to scrutinize the SEC’s process of gathering information, which the regulator is required to respond to by April 29.

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