Is Gary Gensler the ‘Real Villain’ For Cryptocurrencies in America?

Crypto-friendly Representative Tom Emmer has criticized

the United States Securities and Exchange Commission (SEC) Chair, Gary Gensler, over his cryptocurrency regulation approach. 

Emmer went on the Unchained podcast, hosted by author and cryptocurrency journalist Laura Shin, on April 7 to question Gensler's supervision of the cryptocurrency sector. Emmer labeled Gensler a "bad faith regulator" and called into question his supposed 'open door policy,' suggesting that it was an "enter-at-your-own-risk-door."

In Emmer's view, Gensler has been indiscriminately using enforcement actions against the cryptocurrency community while ignoring the "truly bad actors." Emmer provided the example of Coinbase, which had been actively attempting to work with the SEC by seeking compliance feedback on staking products and other issues before the SEC issued a Wells Notice in March.

Emmer claimed that despite having several meetings over many months, the SEC refused to provide feedback to Coinbase. Instead, the SEC slapped the company with a Wells Notice on the very issues for which Coinbase was seeking feedback. Gensler has repeatedly claimed that the SEC has an amicable 'open door policy' since taking over as SEC Chair in April 2021. He has urged cryptocurrency companies to register with the SEC to comply with securities law, stating that all cryptocurrencies, with the exception of Bitcoin (BTC), are classified as securities and therefore fall under the SEC's primary regulation.

Many in the cryptocurrency community have raised concerns about the SEC's apparent 'regulation by enforcement' approach, which they believe is anti-crypto-focused. Coinbase CEO Brian Armstrong has highlighted the difficulties of dealing with the SEC on several occasions, while Kraken CEO Jesse Powell has expressed similar sentiments.

According to Emmer, this is not the way the government should be serving Americans. He believes it sends a clear message to the broader cryptocurrency community that Gensler is not regulating in good faith.

Cryptocurrency regulation in the US remains a topic of debate, with criticism towards SEC Chair Gary Gensler by Representative Tom Emmer. The industry's growth necessitates clear and consistent regulation that balances innovation with investor protection. It will be interesting to see how regulators navigate this emerging technology.

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