The collapse of FTX not only causes criticism of the crypto industry, but also the financial regulators, because it appears that their laws and regulations are not sufficient to protect consumers. US Congressman Tom Emmer is concerned about the strategy of the Securities and Exchange Commission (SEC).
Criticism of Gary Gensler
In his story, Emmer is critical of, among other things, the strategy of SEC Chairman Gary Gensler. According to the congressman, the legislation for American parties is far too strict and causes them to hold back innovation in the country. In addition, he calls the way of acting of the powerful supervisory body arbitrary and inconsistent.
We are even more concerned now as we’ve seen his strategy miss Celsius, Voyager, Terra/Luna– and now FTX.
— Tom Emmer (@RepTomEmmer) November 25, 2022
“We called out in March that Gary Gensler had an arbitrary and inconsistent approach to the crypto community. At this point, our concerns are only heightened after seeing his strategy regarding Celsius, Voyager, Terra/Luna and now FTX,” said a critical Emmer.
Brian Armstrong, the CEO of Coinbase, also indicated during the FTX scandal that in his opinion it is unfair how American parties are being treated. Especially since FTX has just left for the Bahamas due to the strict legislation in the United States.
Less paperwork
In the past, Emmer also asked the SEC to adhere to the standards set out in the Paperwork Reduction Act of 1980, which states that government agencies must prevent their rules from flooding businesses and citizens with unnecessary paperwork. Something that, according to Emmer, they are currently not succeeding in.
Furthermore, according to Emmer, it is not a good thing that the congress gets the SEC’s way of working mainly through progressive publications in the media. Emmer adds that he looks forward to Gensler’s performance before the Financial Services Committee.
Before that committee, Gensler must account for and explain his conduct and that of the SEC. It seems that the powerful US regulatory body is getting further and further into a difficult how and now really needs to get serious about their crypto strategy.