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FameEX Hot Topics | House Approves Amendment Limiting SEC's Authority in Cryptocurrency Enforcement
2023-11-10 16:11:20
The landscape of cryptocurrency regulation in the United States is undergoing a significant transformation following the U.S. House of Representatives' approval of a crucial amendment to the Financial Services and General Government Appropriations Act. This amendment, led by Congressman Tom Emmer (R-MN), targets the U.S. Securities and Exchange Commission's (SEC) ability to enforce regulations on cryptocurrency transactions. The key provision of this amendment is the restriction of the SEC's funding for such enforcement, contingent upon Congress first setting clear regulatory guidelines for the crypto industry.
Congressman Emmer, a staunch critic of SEC Chairman Gary Gensler, has been vocal about his disapproval of Gensler's leadership style, condemning him for inefficiency and incompetence. Emmer's focus has been on ensuring that unelected officials like Gensler are held accountable by Congress. His bipartisan amendment is seen as a measure to check the SEC's influence in the digital asset sector, reflecting a broader legislative concern over the SEC's current regulatory approach to the rapidly growing cryptocurrency market.
The amendment forms a critical part of HR 4664, the Financial Services and General Government Appropriations Act of 2024. Its text explicitly states that none of the funds allocated by this Act are to be used by the SEC for enforcement actions related to crypto asset transactions. This move by Congress signifies an intent to take a more active role in the regulation of digital assets, shifting some of the control away from independent regulatory agencies like the SEC. In addition to Congressman Emmer's amendment, the Act saw the inclusion of two other significant crypto-related amendments. Congressman Warren Davidson (R-OH) introduced an amendment that prevents the Department of the Treasury from funding the development or establishment of a central bank digital currency (CBDC) as legal tender. Congressman Alex Mooney (R-WV) also contributed an amendment that halts funding for the CBDC Working Group, which is overseen by the Department of Treasury. These legislative actions mirror a growing discontent among U.S. lawmakers with the SEC's enforcement-centric approach to regulating the cryptocurrency sector. Congressman Davidson has even proposed legislation aimed at removing Chairman Gensler from his position at the SEC. Emmer's critique of Gensler escalated in September, accusing him of prioritizing power consolidation over the financial well-being and opportunities of American citizens and the nation's financial future. These developments represent a pivotal shift in the U.S. approach to cryptocurrency regulation, underscoring a legislative intent for more direct Congressional engagement in shaping the framework that governs digital asset oversight. This shift indicates a strategic realignment of the roles of Congress and regulatory bodies in the oversight of the burgeoning cryptocurrency market in the United States. Disclaimer: The information provided in this section is for informational purposes only, doesn't represent any investment advice or FameEX's official view.
