Gary Gensler Slammed by Congressman Tom Emmer Over Crypto Regulation Tactics

• Tom Emmer criticized Gary Gensler for inventing the term crypto asset security, claiming it lacks legal basis.
• The SEC withdrew the term crypto asset security in court after using it for three years.
• SEC Commissioner Hester Peirce called for clearer crypto regulations and criticized the agency’s vague approach.

U.S. Congressman Tom Emmer has criticized Gary Gensler during a congressional hearing on September 24. Emmer called Gensler the most destructive and lawless leader in the SEC’s 90-year history, blaming his actions for harming the crypto industry. He claimed that Gensler’s actions directly damaged the cryptocurrency business without legal basis.

Gary Gensler Accused of Creating the Term Crypto Asset Security

Emmer directly criticized Gensler for inventing the term crypto asset security. He pointed out that this term does not exist in any statute and claimed Gensler made it up to justify his aggressive enforcement against the crypto sector. 

Moreover, Emmer highlighted that SEC lawyers recently withdrew the term in a court footnote, showing flaws in Gensler’s strategy over the last three years. Consequently, Emmer argued that this term has been the foundation of Gensler’s actions against the industry.

Emmer Challenges SEC Chair Over Debt Box Case Mishandling

Emmer also criticized Gensler’s handling of the Debt Box case. The SEC had sued the startup for an alleged $50 million fraud. However, the court dismissed the case in May and ordered the SEC to pay $1.8 million in fees. 

Emmer accused SEC attorneys of presenting misleading information in the case to push Gensler’s anti-crypto agenda. Additionally, he noted that this incident was part of a broader pattern of enforcement against crypto companies.

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Peirce Demands Clearer Guidelines for Crypto

Hester Peirce also argued that the agency should have dropped the crypto asset security term long ago. She also stressed the need for clearer guidelines. Peirce explained that the SEC has failed to provide the clarity the crypto industry needs, even though it had the opportunity to do so.

Tom Emmer’s strong statements against Gary Gensler show growing frustration in Congress over the SEC’s crypto regulation. Internal disagreements within the SEC also highlight this tension as commissioner Peirce called for clearer rules. These issues underline the uncertainty surrounding the future of cryptocurrency regulation in the U.S.