The SEC's Gensler wants to keep the digital assets out of existence

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The SEC's Gensler wants to keep the digital assets out of existence

Blockchain technology and digital assets offer a unique chance for the global economy not seen since the beginning of the internet. The unbanked are able to access these innovations, which offer a path for achievement for those who are not part of traditional financial systems.

Although blockchain technology and digital assets are on the rise, bureaucrats like Gary Gensler, the chairperson of the Securities and Exchange Commission, want to stifle their progress in the United States through illegal, over-regulation regulations based on a misguided approach that lacks comprehension of their potential. Thankfully, the courts have slapped Gensler's attempts to drive digital assets out of the U.S. economy. Now, Congress must act to ensure Gensler and the SEC are kept at bay.

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

Why is Gensler so anti-innovation on digital assets? Because of Gensler's inability to prevent Sam Bankman-Fried and FTX from committing one of the largest fraud schemes in the US history, it has been a embarrassing experience for the company.

U.S. Rep. Ritchie Torres labeled Gensler as'singularly responsible' for failure to uncover the fraudulent FTX exchange of Sam Bankman-Fried in 2022. Gensler, who was asleep at the switch, failed to assert SEC oversight before it was too late in the FTX case. Now, Gensler's solution is to jail law-abiding citizens within the industry, due to a personal vendetta against one bad actor. Gensler is trying to impose rules so severe that digital asset firms leave America all together and move their operations overseas.

In his latest defeat, the federal appeals court for 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 order to review 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. Despite this victory, there are no signs that Gensler and the SEC will retreat from their crusade.

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

The Blockchain Innovation Project, a bipartisan advocacy group that aims to educate elected officials on digital assets and blockchain technology, supports the adoption of this rider. At a time when many Americans can hardly reach a consensus about anything, Republicans and Democrats can agree that the overbearing nature of Gensler's SEC is unacceptable.

When it comes to digital assets, they are not going away. Americans have a unique chance to build wealth and grow our economy. If the SEC imposes severe regulations on the industry domestically, the United States will fall behind our rivals in the global marketplace. The right to develop, grow and manage their own financial assets, not the government, should be based on individuals, not the government. We must intervene and create clear guidelines for a promising industry that prevent actors like Chairman Gensler from crushing industries due to a personal grudge.