The Securities and Exchange Commission made clear earlier this year that the federal agency will be bringing many more lawsuits to the cryptocurrency industry. The statement showed that the SEC was planning to tighten the circle of regulations around the nascent industry. In the same vein, the state regulator has issued a stringent information-seeking mandate on cryptocurrency organizations and traders.
To challenge the strong grip of the centralized regulator, a group of 8 US Senators has allied. The said alliance is said to form a united front and demand some relief or amendments for the proposed right to information clause. The law in question stands to violate the privacy privileges of the new crypto businesses and startups specifically.
SEC is Blocking Crypto Innovation
Senator Tom Emmer recently posted an update on his official Twitter account, claiming that the recent reporting requirements issued by SEC are stifling for the cryptocurrency organization. The group of representatives includes names like Ted Budd, Ritchie Torres, Darren Sotto, Josh Gotteimer, Jake Auchincloss, Byron Donalds, and Warren Davidson.
All of the representatives have also signed and participated bipartisan letter of request addressed to the SEC’s current chief Gary Gensler. Emmer claimed that the letter was a result of the several requests received from numerous cryptocurrency organizations that claim that the latest information export to the government seems to be overburdening for the businesses. He also claimed that the new requirements were unfair and authoritarian.
The letter composed by the Senators reads that the interference of the central government agencies has been increasing in lieu of Enforcement Division Investigation. The letter also claims that the current approach of the state agencies is quite unorthodox in terms of collecting information and conducting an investigation.
At the same time, Congress raised several questions about why the SEC is imposing on private cryptocurrency organizations to collect and release their user data. Emmer also claimed that the recent demand from SEC seems less like a volunteer option and more like a compulsory obligation to the cryptocurrency organizations. The decree by SEC is inclusive of clauses like penalties for non-compliance, cost and fairness reports, and small deadlines for compliance.