• Congressman Tom Emmer has criticized the SEC chair Gary Gensler for his approach to cryptocurrency regulation.
• Emmer suggested that Gensler’s supposed “open door policy” is actually an “enter-at-your-own-risk” policy.
• Coinbase had been trying to work with the SEC by getting compliance feedback on staking products, but was instead slapped with a Wells notice by the SEC.
Congressman Tom Emmer Criticizes SEC Chair Gary Gensler
Congressman Tom Emmer has taken issue with United States Securities and Exchange Commission (SEC) chairman Gary Gensler’s approach to cryptocurrency regulations, labeling him a “bad faith regulator” during an April 7 appearance on the Unchained podcast hosted by author and crypto journalist Laura Shin.
Gensler’s Open Door Policy Questioned
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 pointed to the example of Coinbase, which had been trying to get compliance feedback from the SEC on staking products before being issued a Wells notice in March 2021.
Gary Gensler’s View On Crypto Assets
Since taking over as chairman of the SEC in April 2021, Gensler has repeatedly suggested that the agency has an “open door policy” and called on crypto firms to register with them in order to stay compliant with securities laws. This is mainly due to his view that nearly all crypto assets apart from Bitcoin are classified as securities and should be regulated primarily by the SEC.
Coinbase CEO Raises Concerns About Regulatory Uncertainty
Coinbase CEO Brian Armstrong has raised concerns about regulatory uncertainty after Coinbase was met with a Wells notice despite their attempts at working with the agency. Armstrong stated that there were issues related to how regulators interpret existing laws, which made it difficult for companies like Coinbase to know how they should act or what rules they should follow when launching new products and services.
The situation between Congressman Tom Emmer and Gary Gensler highlights some of the difficulties faced by crypto firms when dealing with regulators who may not necessarily understand or agree with their approach towards innovation in this space. As more firms attempt to gain regulatory clarity from agencies like the SEC, it remains uncertain how these conversations will impact future regulations within this industry.