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U.S Lawmakers Object to SEC’s Decision to Expand Crypto Enforcement Unit

Written by: Qadir AK

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Qadir AK

Qadir Ak is the founder of Coinpedia. He has over a decade of experience writing about technology and has been covering the blockchain and cryptocurrency space since 2010. He has also interviewed a few prominent experts within the cryptocurrency space.

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May 5, 2022

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SEC Chairman Gary Gensler made an announcement recently, that U.S SEC has doubled the size of the Enforcement Division’s crypto unit. Adding to it, he said that

“Regulators will be better equipped to police wrongdoing in the crypto markets while continuing to identify disclosure and control issues with respect to cybersecurity.”

The Security Exchange Commission’s plan of expanding its crypto enforcement unit was questioned by several Lawmakers and commissioners associated with the SEC of the U.S. The decision to expand the enforcement was opposed by making a statement that “The SEC is a regulatory agency with an enforcement division, not an enforcement agency.” 

Lawmaker’s statements attacking SEC’s expansion

‘Crypto mom’ and SEC commissioner, Hester Peirce, tweeted on the SEC decision that

“The SEC is a regulatory agency with an enforcement division, not an enforcement agency. Why are we leading with enforcement in crypto?.” 

Further, Congressman Patrick McHenry (R-N.C.) also opposed saying that SEC Chair Gary Gensler’s decision on regulating enforcement is making difficulties in American innovation. If the US wants to lead the deployment of the next generation of internet technology, it is necessary to provide clear, thoughtful rules for the digital asset ecosystem. 

In opposition, Rep.Warren Davidson (R_OH) objected to Gary Gensler’s idea of creating value. Further reacted by saying the SEC chair’s decision is a mistaken belief that Gary Gensler is testing the labor theory of value at the SEC, the more labor the more value created would never be helpful, he stated. 

Another Lawmaker of the U.S, opposing Gary Gensler’s decision, Congressman Tom Emmer (R-MN) questioned that

” I wonder how many taxpayer dollars are being wasted in Gary Gensler’s personal crusade against the crypto industry?”.

Rep.Bill Huizenga (R-MI) also stated standing in opposition that:

” Congress should not cede its authority to Gary Gensler. The SEC’s desire to use regulation by enforcement to provide ‘clarity’ for digital asset market participants is a power grab. We need responsible solutions, not edicts from bureaucrats.”

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Qadir AK

Qadir Ak is the founder of Coinpedia. He has over a decade of experience writing about technology and has been covering the blockchain and cryptocurrency space since 2010. He has also interviewed a few prominent experts within the cryptocurrency space.

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