United States Representative Tom Emmer, Majority Whip of the U.S. House of Representatives — who has previously expressed concerns about the U.S. Securities Exchange Commission’s (SEC) actions in the cryptocurrency industry — sponsored an appropriations amendment restricting the SEC’s use of funds on digital asset enforcement on Sept. 8.
In his statement, Emmer criticizes SEC Chair Gary Gensler, alleging he has overstepped his authority, which is negatively affecting the American people. Emmer urged Congress to utilize its available methods and proper procedures to thwart any potential misuse of taxpayer funds by Gensler and the SEC.
Emmer has previously jointly sponsored several bills seeking to enhance regulatory transparency in the United States.
.@GaryGensler has abused his authority to grow the Administrative State to the detriment of the American people. Congress must use all our tools, including the appropriations process, to restrict Chair Gensler from further weaponizing taxpayer dollars.
— Tom Emmer (@GOPMajorityWhip) September 8, 2023
The appropriations amendment will limit the SEC’s utilization of funds for digital asset enforcement until comprehensive rules and regulations are put in place. The absence of cryptocurrency regulations has raised concerns about the SEC’s substantial expenditures in legal disputes with numerous crypto entities, potentially “weaponizing” taxpayer funds, according to Emmer.
In Match, Emmer introduced the Blockchain Regulatory Certainty Act, which clarifies that blockchain developers and service providers are not considered money transmitters, as they do not hold consumer funds in custody.
Related: SEC urges court to grant Ripple Labs appeal citing ‘knotty legal problems’
The bill distinguishes between custody providers and non-custody providers, relieving the latter from unnecessary compliance burdens that might hinder innovation in the United States. This clarification ensures that validators, miners and other noncustodial service providers are not categorized in the same way as custody providers.
Key figures in the blockchain sector, including Blockchain Association CEO Kristin Smith and Crypto Council CEO Sheila Warren, expressed support for the proposed legislation. Emmer has also thrown his support behind Representative Warren Davidson’s SEC Stabilization Act, which seeks to remove Gary Gensler from his position as SEC chair.
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