The SEC's trying to control digital assets out of existence

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The SEC's trying to control digital assets out of existence

Blockchain technology and digital assets offer an unprecedented opportunity for the global economy, not seen since the introduction of the internet. These advancements open doors to the unbanked, providing a platform for success for those who are locked out of traditional financial systems.

Despite the growth of blockchain tech and digital assets, bureaucrats like Gary Gensler, the chairperson of the SEC, want to hinder their development in the U.S. by illegal, overbearing regulations based on a misguided approach that lacks comprehension of their potential. Fortunately, the courts have slapped Gensler's attempts to drive digital assets out of the U.S. economy. Congress must act now to ensure Gensler and the SEC are kept at bay.

Gensler intends to take his authority to regulate 'as far as [it] go,' while protecting 'transactions, products, and platforms from falling between the regulatory cracks, according to his remarks at the 2021 Aspen Security Forum. Gensler's latest attempt at unauthorized bureaucratic overreach is aimed at controlling American digital asset firms out of existence.

Why is Gensler against progress in digital assets? Because of the embarrassment caused by Gensler's failure to prevent Sam Bankman-Fried and FTX from committing one of the biggest frauds in the United States history, it is ironic that Gensler failed to prevent the bankman-fried and FTX from committing one of the largest frauds in U.S. history.

Ritchie Torres, a Republican, labeled Gensler a'singularly responsible' for failing to reveal Sam Bankman-Fried's fraudulent FTX cryptocurrency exchange in 2022. Gensler was asleep at the switch and failed to assert SEC oversight before it was too late in the FTX case. Now, Gensler's solution is to punish a law-abiding citizen within the industry due to a personal vendetta against one bad actor. By imposing rules so drastic that digital asset firms leave America all together and move their operations overseas, Gensler is intent on imposing rules that will make them lose their operations.

In his latest victory, the federal appeals court for the District of Columbia ruled against the SEC in their attempt to prevent Grayscale Investments from turning their Grayscale Bitcoin Trust into a listed Bitcoin exchange-traded fund. Judge Neomi Reo ordered Grayscale's decision to be granted and the SEC's order to deny the GBTC listing application to be vacated, citing that the SEC did not offer any explanation as to what Grayscale had done wrong. There are no clear signs that Gensler and the SEC will retreat from their crusade.

To thwart any new regulatory efforts in the future, Congress must act promptly. House Majority Whip Tom Emmer has taken the lead in these efforts to combat Gensler and the SEC by introducing an amendment to the Financial Services and General Government appropriations bill. If enacted, this rider would prevent the SEC from using taxpayer dollars for illegal enforcement actions against digital assets without clear legal authority.

The Blockchain Innovation Project, a bipartisan advocacy organization that educates elected officials on digital assets and blockchain technology, supports the adoption of this rider. At a time when many Americans cannot rely on a consensus on anything, Republicans and Democrats can agree that the overbearing nature of Gensler's SEC is unacceptable.

Digital assets are not going away. Americans have a distinct advantage over other nations in terms of building wealth and boosting our economy. If the SEC imposes crippling regulations on the industry, the United States will fall behind our competitors in the global marketplace. The right to develop, grow and manage their own financial assets should be exercised by individuals, not the government. We must intervene and create clear guidelines for this promising industry that prevent actors such as Chairman Gensler from destroying industries due to a personal grudge.