US House Criticizes Gensler Over SEC's Crackdown On Crypto

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Tom Emmer Cites Ripple Win in Call for Crypto Regulation Reform – Crypto News

Published

2 years ago

December 5, 2023

Dripp

In a significant development in the ongoing debate over cryptocurrency regulation, U.S. Representative Tom Emmer has cited Ripple’s legal victory in a bid to reshape how digital assets are governed. The Congressman’s move challenges the Securities and Exchange Commission’s (SEC) approach to cryptocurrency enforcement.

Tom Emmer Highlights SEC Overreach in Crypto

The case in question saw Ripple, a major player in the crypto world, score a win against the SEC. In July, a U.S. District Court Judge ruled that while secondary sales of Ripple’s XRP token could be considered securities transactions, XRP sold on secondary markets did not meet this criterion. This outcome has been pivotal, with Ripple’s success seen as a pushback against what some view as an overreach by the SEC.

Tom Emmer, representing Minnesota’s sixth congressional district, has taken this ruling as a cornerstone of his critique against the SEC’s methods. He argues that the SEC has been overly aggressive in its crypto dealings, often stepping beyond its jurisdiction. By highlighting Ripple’s case, Emmer underscores what he perceives as a pattern of regulatory overextension.

Proposed Amendment Aims to Curb SEC’s Crypto Enforcement

Central to Emmer’s strategy is an amendment to the federal budget to restrict the SEC’s use of funds for actions against crypto companies. The Congressman argues that the agency has been enforcing regulations without establishing clear rules for the industry. Tom Emmer says this approach is counterproductive and exceeds the SEC’s legislative mandate.

The amendment, which has made its way into the House’s budget bill, could significantly impact the SEC’s capacity to engage in similar enforcement actions. If passed, it would shift the crypto regulatory landscape substantially, potentially easing the burden on digital asset companies.

Tom Emmer’s stance is notable, as it reflects a growing sentiment among some policymakers that the crypto industry, while in need of regulation, should not be subject to indiscriminate enforcement actions. By bringing Ripple’s case to the forefront, the Congressman has highlighted a key moment in the ongoing discourse around digital asset regulation.