US Lawmakers Call Out SEC For Putting Unnecessary Burden On Crypto, Stifling Innovation

A group of congressmen are appealing to the US Securities and Exchange Commission (SEC) to be more accommodative to the crypto industry, criticizing the agency's current stance on the space.

Writing to SEC Chair Gary Gensler, Tom Emmer of Minnesota, Darren Soto of Florida, Warren Davidson of Ohio, Jake Auchincloss of Massachusetts, Byron Donalds of Florida, Josh Gottenheimer of New Jersey, Ted Budd of North Carolina, and Richie Torres of New York questioned the SEC’s process for crypto information seeking.

“While the SEC has authority to obtain information from market participants for rulemaking purposes, it must ensure that these inquiries don't infringe on the standards established in the Paperwork Reduction Act, which limits the burden the govt. imposes on private businesses & citizens,” Emmer said.

Emmer also asserted that “Crypto startups must not be weighed down by extra-jurisdictional and burdensome reporting requirements,” adding, “We will ensure our regulators do not kill American innovation and opportunities."

In the congressmen’s letter, they ask a series of questions scrutinizing the SEC’s systems, including:

“Over the past five years, how many voluntary document requests has the SEC sent to individuals, project teams, entities, or the like regarding activities related to cryptocurrency, digital assets, or other uses of blockchain technology (Relevant Entities)?”

The congressmen also asked if the SEC had ever actually tested out their method for gathering information, and if so, what they had learned.

According to congressman Emmer, his office had received numerous reports from crypto and blockchain firms that Chair Gensler’s information requests were “overburdensome,” and that they didn’t feel voluntary and were stifling innovation.

At the time of publishing, there has been no response from Gary Gensler or the SEC.