Emmer accused the SEC of exceeding its jurisdiction at the expense of public resources with the cryptocurrency industry. Gary Gensler wants the SEC to have exclusive jurisdiction over crypto assets to regulate them like stocks and shares.
Tom Emmer recently said the US Securities and Exchange Commission (SEC) is still targeting cryptocurrencies and has exceeded its jurisdiction.
The Republican senator has questioned the level of trust of the public in the US financial system. In addition, he commented that the SEC attributed this trust erosion to corporate and industry participants.
The official accused the agency of exceeding its jurisdiction at the expense of public resources and trust, especially with the cryptocurrency industry.
Senator Emmer recently released a video of his conversation with the directors of the financial regulator.
The SEC Has Struggled to Discourage Crypto Assets
SEC Compliance Director Gurbir Grewal confirmed that there were industry sweeps after Tom Emmer questioned him about them. In that regard, Grewal declined to provide any details by citing the policy of the SEC.
The Chief Compliance Officer also said he had made extra-judicial claims about companies not under the authority of the SEC.
Senator Emmer also stated that SEC Chairman Gary Gensler instructed the law enforcement division to send sweep letters. They would send them to a particular sector of the crypto community to trap them in an allegedly unconstitutional violation.
According to the SEC, those not responding to the supposedly voluntary inquiries will face the consequences. Emmer accused the agency of dissolving the division to create crypto asset regulations.
In addition, the senator commented that the SEC seeks to expand the size of its cryptocurrency enforcement division. He argued that they are using the enforcement to exceed their jurisdiction unconstitutionally.
He said that the SEC had become a power-hungry regulator, politicizing law enforcement and urging companies to talk to the Commission. Besides, he considers that the agency has hit them with law enforcement, discouraging cooperation in good faith.
The SEC Not to Vote on the Lummis-Gillibrand Bill
The proactive Lummis-Gillibrand bill is unlikely to receive the vote of the SEC this year. Senator Lummis said it might be difficult for lawmakers to digest the broad scope of the legislation quickly. Therefore, the Senate might not vote on it in late 2022.
Gary Gensler has criticized the bill arguing that it poses a USD 100 trillion threat to the traditional financial sector. The official wants the SEC to have exclusive jurisdiction over crypto assets to regulate them like stocks and shares.
Meanwhile, the Price of Bitcoin Reaches a High Daily Close
The price of Bitcoin (BTC) has left a long-term descending resistance line and a short-term ascending parallel channel. Therefore, a reversal of the bullish trend may very likely have started.
Bitcoin has traded below a descending resistance line since April 5th. The move to the downside has recently led to a long-term low of USD 17,622.
Since then, the price of BTC has increased and exceeded the resistance line. A breakout of a long-term resistance line usually leads to a significant move to the upside. The 0.382 Fibonacci retracement resistance level currently stands at USD 29,400, as it measures the full height of the resistance line.
That breakout happens alongside a breakout of the RSI above 50, a signal of a bullish trend. The RSI support line indicates that the bullish structure is intact.
By Alexander Salazar
