US Congressman Blasts Against SEC’s Ruthless War on Cryptocurrencies
John Rose, a Republican congressman from Tennessee, recently called the SEC chairman a “rogue regulator,” as the regulatory agency appears to exceed its role in protecting investors.
As is known, for several years the United States Securities and Exchange Commission (SEC) has maintained a relentless war against cryptocurrencies. This regulatory force has become more notable particularly since Gary Gensler, a highly controversial figure for his actions, took office.
At the end of 2022, the SEC began a confrontation against any company linked to digital assets. Before that date, there was only the case against Ripple, which the organization sued for alleged trading of unregistered securities with the XRP token.
From then on, the SEC intensified its judicial actions, focusing against several crypto exchanges and platforms, among which Binance, Coinbase and Kraken stand out. More recently, specifically on Monday of this week, the SEC sent a Well notice to the broker Robinhood.
This behavior on the part of regulators is not well received by enthusiasts and politicians who support blockchain-based ventures. Consequently, John Rose, US Republican congressman, lost his temper, and through his account on the X platform, called the SEC a “rogue regulator.” His publication was the following:
“The @SECgov exceeded its mandate to protect investors and maintain fair, orderly markets by issuing a Wells Notice to @RobinhoodApp, a precursor to enforcement action.”
Cryptocurrencies Have Allies in the US Congress
Harsh responses have emerged from the US Congress to the bloody war that the SEC is waging against cryptocurrencies. In fact, there are calls for Gensler to be removed from his position at the regulatory agency.
In this sense, Rose was emphatic with his publication against the SEC, mentioned above, stating that he was proud “to help lead the effort to provide clarity by passing the FIT for the 21st Century Act so that rogue regulators like @GaryGenslercan focus on their mandate to protect investors and not disrupt innovation.”
The statements made by Rose respond to the Wells notification that the SEC sent to Robinhood, a platform known for being one of the strictest when it comes to including tokens for trading. Hence, the SEC’s intention to take it to court has been received with surprise.
Apparently, the war that the SEC has waged against cryptocurrencies shows no signs of abating; On the contrary, as the months go by, the Commission’s attitude becomes more intense and aggressive towards technological innovation in the United States.
Gensler’s Reaction to Questions About Cryptocurrencies
In another vein, the current chairman of the SEC, Gary Gensler, seems to be uncomfortable with being criticized about crypto, and complains of receiving “an exaggerated proportion” of questions about it, in contrast to the topic of traditional finance.
On CNBC’s Squawk Box on May 7, Gensler said that “Crypto is a small piece of our overall markets,” in response to a question about the SEC’s priorities.
Next, Gensler compared the “$110 trillion capital market” that the SEC oversees and the cryptocurrency market, which is just $2.4 trillion. He argued that the latter “it’s an outsize piece of the scams and frauds and problems in our markets,” since much of it does not comply with United States securities laws.
All in all, so far in 2024, the SEC has filed six crypto-related lawsuits, while last year it carried out 46 enforcement actions against crypto firms, which is more than double the number from 2021. There are at least a dozen court cases brought by the SEC that remain open in US courts, with numerous people accused of selling unregistered securities and conducting illegal transactions.
By Audy Castaneda