A heated exchange unfolded at a recent Congressional hearing as lawmakers grilled SEC Chair Gary Gensler over allegations of suppressing crypto innovation to protect establishment banks.
US Congressman Tom Emmer accused SEC Chair Gary Gensler of improperly regulating crypto to benefit large banking institutions.
During testimony before the House Financial Services Committee, Emmer suggested Gensler aims to categorize most crypto assets as securities solely to guard banks from emerging competition.
Also read: Gary Gensler Says Bitcoin is Not a Security, Refuses to Say It’s a Commodity
Emmer highlighted Gary Gensler’s comment from last year
Emmer highlighted comments Gary Gensler made last year regarding bank executives complaining of customers shifting money into crypto. The lawmaker alleged Gensler’s crypto oversight is driven by a desire to shield these incumbents rather than investor protection.
Citing a recent court ruling, Emmer blasted Gensler’s “regulation by harassment” approach that goes beyond the SEC’s authority and stifles financial innovation. He argued Gensler consistently disregards judicial and legislative checks on the SEC’s crypto overreach.
“It’s clear you are consolidating your own power, even though it means crushing opportunities for everyday Americans,” Emmer said. He accused Gensler of long-standing loyalty to Wall Street giants at the expense of market evolution.
Gensler maintained that his actions target crypto fraud and manipulation. However, Emmer doubled down on allegations that the SEC chair has not acted as an impartial regulator regarding cryptocurrency.