SEC's Gensler Blasted by Congressman
The chairman of the Securities and Exchange Commission (SEC), Gary Gensler, has come under fire from House Republicans' majority whip, Tom Emmer, over his handling of Staff Accounting Bulletin (SAB) 121. According to Emmer, Gensler's approach runs counter to the SEC's main goals, which are to safeguard investors, encourage capital formation, and maintain just, efficient, and orderly markets. This charge comes from concerns that the new rule may lead to excessive regulatory overreach.
According to Emmer in his criticism, is what he looks at as the departure of SEC from its stature duties. He further says the the regulation of SAB 121 limiting banks from productively evidence of holding cryptos might worsen the efficiency of the market and the confidence of the investor.
The position reflects a bigger worry of Republicans about the potential unfavorable effects of regulatory enlargement on the capital markets.
The discord between Congressman Emmer and Chairman of SEC Gensler about the regulation of digital assets is not the first time. Previously, Gensler was accused of going beyond the regulatory scope of the Securities and Exchange Commission with a supposed anti-crypto bias by Emmar. Emmer emphasized that Congress and the general public should not interpret the SEC's regulations broadly as "guidance."
The conflict is a reflection of the ongoing struggle to provide robust regulatory oversight while also encouraging innovation in the rapidly growing cryptocurrency market.
Emmer is seen as someone, who has always been an advocate of minimal regulatory intervention, advocating for laws that encourage innovation and secure the investor.
Recently, the SEC has become more aggressive and taken a more active role towards big players in the crypto industry. And this aggressive approach has reportedly resulted in legal challenges.
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