• Crypto-friendly congressman Tom Emmer has criticized US SEC chair Gary Gensler for his approach to cryptocurrency regulation, labeling him a “bad faith regulator.”
• Congressman Emmer questioned Gensler’s supposed “open door policy,” suggesting it is an “enter-at-your-own-risk” door.
• He cited Coinbase as an example of the SEC’s lack of feedback and enforcement action on projects that have been actively trying to work with the agency.
Congressman Criticizes SEC Chair For His Approach To Crypto Regulation
Crypto-friendly Congressman Tom Emmer has slammed United States Securities and Exchange Commission (SEC) chair Gary Gensler for his approach to cryptocurrency regulation, labeling him a “bad faith regulator” during an April 7 appearance on the Unchained podcast hosted by author and crypto journalist Laura Shin.
Congressman Questions Open Door Policy
Emmer questioned Gensler’s supposed “open door policy,” suggesting that he “might have an open door, but it is an enter-at-your-own-risk-door.” He highlighted Coinbase as an example of the SEC’s lack of feedback and enforcement action on projects that have been actively trying to work with the agency.
Gensler Takes Over Helm Of SEC
Since Gensler took over the helm of the SEC in April 2021, he has repeatedly suggested that the agency has an amicable “open door policy” and called on crypto firms to register with the SEC to maintain compliance with securities law. This is primarily due to his view that nearly all crypto assets apart from Bitcoin (BTC) are classified as securities. Thus the sector should be principally regulated by the SEC.
Coinbase CEO Highights Difficulty Of Regulation
Despite this, Coinbase CEO Brian Armstrong has highlighted the difficulty of navigating regulatory uncertainty when launching products in certain jurisdictions due to different interpretations of existing regulations. As such, many companies have turned towards self regulation rather than waiting for official guidance from regulators.
It remains unclear how effective Gensler’s open door approach will be in providing clarity for industry participants looking for direction or if this will merely result in further confusion and frustration due to lack of feedback or enforcement action taken against those who are proactively looking for it.