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US senator calls on SEC chief Gensler to respond to ‘regulatory failures’

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Minnesota Senator Tom Emmer slammed SEC Chairman Gary Gensler for his “misguided efforts to collect cryptographic information” and insisted that Gensler must appear before Congress to explain the cost of his “regulatory failures.”

Emmer’s comments came on Dec. 10 tweet to his 67,500 Twitter followers, where he referenced a bipartisan blockchain pool letter he co-authored to the SEC chief on March 16.

“We now know that Gensler’s efforts to collect cryptographic information were ineffective,” said Emmer, referring to the collapse of the Terra ecosystem and the bankruptcies of crypto platforms Celsius, Voyager, and FTX.

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“[Gensler] He must testify before Congress and answer questions about the cost of his regulatory failures.”

He noted that Gensler has not appeared before the House Committee on Financial Services since Oct. 5, 2021, which left encrypted media to fill the void for the SEC’s failure to investigate according to Emmer.

The authors of the March Blockchain Caucus letter stated that the SEC’s efforts to obtain information from crypto companies were not “targeted, intentional, or obvious” but rather “indiscriminate and unfocused.”

Eimer argued that Gensler’s response — which came two months later — sidestepped many of the questions that queried the methods and processes the SEC would adopt in providing oversight of the digital asset industry.

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“Instead, Gensler decided to explain to Congress the roles of the enforcement and examination departments of the SEC,” Emmer stated.

Eimer has previously expressed criticism of Cryptocurrency oversight strategy for financial oversight.

He stated on November 26: “Congress should not learn the details about the SEC’s oversight agenda through stories planted in progressive publications.”

Related: Republican lawmaker claims SEC chief has been coordinating with FTX to “get a regulatory monopoly”

A few days earlier on November 23, Eimer tweeted that Gary Gensler’s lack of leadership was a contributor to FTX’s disastrous collapse that took effect in early November.

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Much of Gensler’s and the SEC’s efforts over the past years have focused on determining whether cryptocurrencies fall within the definition of the Howey test and are therefore subject to US securities laws, most notably Ongoing Ripple issue in XRP (XRP) Code

Emmer a Cryptocurrency supporter As a financial asset that dates back to 2020 and takes the view of the US government That should clear the way To ensure that it does not stifle innovation in the crypto industry.