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Griping at Gensler: Eight crypto-positive members of Congress have written to Gary Gensler, the chair of the Securities and Exchange Commission (SEC), calling the regulator's scrutiny of the crypto industry unfair, "overburdensome" and stifling to innovation and development. They also imply that the SEC is misusing its investigative divisions. The hateful eight: The Congress members behind the letter are all part of the Congressional Blockchain Caucus and are led by Congressman Tom Emmer (R-MN) who has spearheaded the initiative. "My office has received numerous tips from crypto and blockchain firms that SEC chair Gary Gensler's information reporting 'requests' to the crypto community are overburdensome, don’t feel particularly… voluntary… and are stifling innovation," Emmer posted to Twitter. In November, Emmer wrote to Gensler to denounce the SEC's failure to approve a fully-fledged U.S. bitcoin exchange-traded fund. This week's letter, signed by both Democrats and Republicans, included: Rep. Darren Soto (D-FL), Rep. Warren Davidson (R-OH), Rep. Jake Auchincloss (D–MA), Rep. Byron Donalds (R–FL), Rep. Josh Gottheimer (D–NJ), Rep. Ted Budd (R–NC), and Rep. Ritchie Torres (D–NY).
Unlucky 13: The letter, which can be seen in full here, includes 13 questions to Gensler on how many requests have been made of crypto companies in recent years and how the SEC justifies its pursuit of them.
Tables turn: Despite many in the crypto community cheering Gensler's appointment to the SEC early last year due to his understanding of blockchain technology, he's become the sector's nemesis. Gensler has argued most cryptocurrencies are securities and fall under the SEC's remit, along with the exchanges that list them.
Zoom out: Crypto regulation has come into focus for lawmakers in the U.S. and around the world in recent weeks, partly due to crypto's use by those hit by sanctions against Russia. Last week, U.S. president Joe Biden signed a long-awaited executive order that tasked various federal departments and agencies to investigate crypto and get a handle on the fast-growing market. Gensler weighed in on the order, saying that he looked forward to collaborating with the government and would focus on "protecting investors and consumers, guarding against illicit activity, and helping ensure financial stability."
Ripples and waves: Meanwhile, Ripple, the company behind the XRP cryptocurrency that's currently locked in a long-running legal battle with the SEC, has said it plans to give out 1 billion of its XRP tokens as grants for developers to create financial projects based on its payments-oriented distributed ledger, it was first reported by The Information. The SEC has alleged Ripple violated U.S. securities laws by selling $1.3 billion in XRP in an unregistered securities offering. Ripple is following in the footsteps of crypto exchange Binance which last year announced that it created a $1 billion fund for developers working on the Binance Smart Chain.
Meanwhile... The Wall Street Journal's editorial board has penned an op-ed accusing Gensler of "seeking more control over private markets," even as the SEC's power over public markets has diminished over recent decades.
Now read this: The Untold Story Of How A YouTube Rapper Became A Suspect In A $4 Billion Bitcoin Fraud
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