US Congressman: FTX’s Collapse Not a Crypto Failure

US Capitol Building

U.S. Congressman Tom Emmer expressed his disapproval with the Securities and Exchange Commission (SEC) chair, Gary Gensler, on his approach toward the regulation of the cryptocurrency industry.

The Minnesota congressman said in a tweet that lawmakers have become more concerned with Gensler’s approach to the industry, factoring in that “his strategy missed opportunities with Celsius, Voyager, Terra/Luna – and now FTX.”

Emmer continued by saying that Congress shouldn’t have to read about the regulator’s “oversight agenda through planted stories in progressive publications.”

Chair Gensler received a letter in March from Emmer and seven of his colleagues, questioning the Commission’s targeted approach towards crypto firms.

The bipartisan letter, citing the Paperwork Reduction Act (1980), stressed that federal agencies shouldn’t request information from private businesses or citizens that is either unnecessary or duplicative. The letter also claimed that the Commission’s method of regulating the crypto industry was “burdensome” and “stifling innovation” in the US.

SEC Chair Gensler is set to appear before the House Financial Services Committee to discuss the agency’s role in regulating the financial sector. The NY Post reports the Committee is determined to ‘grill’ Gensler on what he knew about the misdeeds of Sam Bankman-Fried (SBF) which led to the shocking collapse of the crypto exchange FTX. The exchange has filed for bankruptcy, while SBF, who’s under criminal investigation, still resides in the Bahamas.

Emmer’s recent criticism of Gensler is the second in the last few days. In a recent Fox Business interview, the Minessota congressman said that “FTX’s collapse was not a failure of crypto,” but rather a failure of business ethics, Sam Bankman-Fried, SEC oversight, and FTX.

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