SEC boss Gary Gensler for crypto regulation under fire

A high -ranking Republican, Gary Gensler, the chairman of the Securities and Exchange Commission, has attacked because of his attempts to regulate cryptocurrencies, since his defenders reinforce their resistance to several regulatory proposals.

Tom Emmer, a representative of Minnesota and Co-chairman of a group of legislators who are interested in blockchain, said that he believes Gensler exceeds his authority with his attempts to expand the role of the SEC when regulating cryptocurrencies.

Emmer's intervention is part of a more comprehensive step of supporters of cryptocurrencies to push back against the attempts led by the Democrats, to strengthen the supervision of the $ 2 trillion.

"All supervisory authorities want more responsibility and I can't blame them," said Emmer in an interview with the Financial Times. "But I think Gary Gensler's vision is much more comprehensive, and frankly he has a negative impact - and may have a really big negative impact - on private investors and possibilities that entrepreneurs and innovators could offer."

Trade in cryptocurrencies and crypto-related products has risen suddenly in recent years and has helped crypto exchange platforms such as Coinbase to achieve reviews of several $ 10 billion.

But with the investments in this area, official control has also increased, with the supervisory authorities warning of the risk that cryptocurrencies are used for fraud and money laundering.

Gensler told the Congress on Tuesday that he wanted crypto exchanges to be registered with the SEC, and added: "Especially now [investors] do not have the advantage that we humans protect against fraud and manipulation.

Emmer said the FT: "I do not agree" [Gensler] vigorously when he suggests that almost all of these [Crypto Products] are securities. I think the vast majority of cryptocurrency offers or related offers are actually currencies or raw materials. The Sec is not involved.

"If the SEC saw one of these coins as a security, the value of this token would drop. And these small investors would be seriously injured - that is the opposite of his mission and authority."

Last month Coinbase has dropped a plan for the introduction of a new product for lending digital assets, known as Lend, after the SEC warned that it would take legal steps against such a step.

other defenders of cryptocurrencies have also started to push back. Hester Peirce, one of two Republicans at SEC, said the FT at the beginning of the year that it was concerned that Gensler would hinder innovations with his pursuit of a new regulation.

At the beginning of this year, the Pro crypto campaign group Fight for the Future organized a public pressure campaign to oppose a measure in the cross-party infrastructure law of $ 1.2 trillion, which would force crypto exchanges to report transactions to the US tax authorities. The organization said the campaign generated 40,000 calls to the legislator and 10,000 tweets.

Companies for digital assets have also founded a number of new lobbying organizations to represent their arguments on the Capitol Hill. Perianne Boring, the President of the Chamber of Digital Commerce, one of these lobbying organizations, said: "If the industry grows and the business model becomes more complex, the industry has to work more with the legislator."

Lobbyists have found an open-minded audience

In the past few months, members of the Caucus, which covers the political spectrum from the liberal Democrat Ro Khanna to the nearby Trump-allied Matt Gaetz, have submitted several draft laws that would facilitate the trade in cryptocurrencies.