The US Securities and Exchange Commission (SEC) interferes with the regulation of the cryptocurrency industry and engages in unethical behavior towards its participants. This was stated by Tom Emmer, a member of the House of Representatives.

At a meeting of the Financial Services Committee of the lower house of the US Congress, Emmer accused the Commission of politicizing the rules. According to him, department head Gary Gensler chose the tactics of harassment and threats.

“Under Gensler, the SEC has become a power-hungry regulator politicizing law enforcement by forcing companies to ‘come and talk’ with the Commission and then forcing them to block good-faith cooperation,” the politician said.

Emmer asked Gurbir Grewal, executive director at the SEC, whether such controls are within the authority of the agency and what threatens companies that refuse dialogue.

The representative of the Chamber acknowledged that the Commission had taken coercive measures against entities not under its jurisdiction. Emmer called the regulator’s actions “absolutely unacceptable”. According to him, the department uses unfair methods when it comes to digital assets.

Congressman Brad Sherman, who previously called for a ban on buying and mining cryptocurrencies, also criticized the SEC for its approach to industry participants. He recalled that the regulator accused Ripple of selling unregistered securities in the form of XRP, not trading platforms.

Gensler took over the department in April 2021. Over the next few months, he urged Congress to clarify the regulation of the crypto industry and warned of increased oversight of stablecoins and DeFi.

Later, the head of the Commission called bitcoin exchanges to dialogue.

In September, the SEC warned Coinbase of possible legal action if it launched USDC-based crypto savings accounts. The company later abandoned its plans.

In the summer of 2021, BlockFi faced demands from state-level financial regulators. Bloomberg later reported that the SEC had launched an investigation into the firm.

In February 2022, it became known that the crypto lending platform would pay a $100 million fine as part of the settlement.

In the same month, the Commission decided not to impose sanctions on companies that voluntarily come under the agency’s control.

Recall that in June, Ripple chairman Brad Garlinghouse accused the SEC of using a coercive approach rather than working on clear regulation for the industry.

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