Posted 9 months ago | by Catoshi Nakamoto

U.S. Congressman Patrick McHenry (R-NC) criticized the U.S. Securities and Exchange Commission (SEC) and its commission head Gary Gensler for asking for further powers over crypto, calling the attempt “a blatant power grab that will hurt American innovation.” He added, “We don’t need another backroom deal between Gensler and Elizabeth Warren.” McHenry isn’t the only government official to criticize the SEC, last week, Commodity Futures Trading Commission (CFTC) Republican commissioner Brian Quintenz, stated the SEC had no authority over crypto.

AdobeStock 241054515 U.S. Congressman and CFTC Commissioner Call Out SEC For Its "Power Grab" Over Digital Assets

Top Republican on the House Financial Services Committee Rep. Patrick McHenry (R-NC) published a statement in response to a letter SEC Chairman Gary Gensler sent to Senator Elizabeth Warren about cryptocurrency regulation.

“Chairman Gensler’s latest move to ask Congress for jurisdiction over non-securities exchanges is a blatant power grab that will hurt American innovation,” Republican Leader McHenry said. “Given the distinct nature of digital assets, policymakers must be thoughtful and deliberative in legislating in this space. That’s why I introduced H.R. 1602, the Eliminate Barriers to Innovation Act, to bring regulatory certainty to market participants and regulators. We need smart policy, made through a transparent process, to ensure innovation and job creation continue in the U.S. We don’t need another backroom deal between Gensler and Elizabeth Warren.”

Former Goldman Sachs, Gensler wrote a letter to Warren in response to her own July 7th letter to Gensler inquiring about cryptocurrency regulation. At the time, Warren called for the SEC to use its full authority to address risks in the cryptocurrency market.

In a recent letter, Gensler wrote to Warren: “I believe we need additional authorities to prevent transactions, products, and platforms from falling between regulatory cracks. We also need more resources to protect investors in this growing and volatile sector.”

McHenry’s declaration “on Gensler power grab over digital asset exchanges” emphasizes that the SEC chairman is “asking for jurisdiction of all exchanges of digital assets — not all of which are securities.” The congressman further stressed:

“Chairman Gensler’s latest move to ask Congress for jurisdiction over non-securities exchanges is a blatant power grab that will hurt American innovation.”

“Given the distinct nature of digital assets, policymakers must be thoughtful and deliberative in legislating in this space,” he added.

Rep. McHenry also mentioned his bill he proposed, H.R. 1602, the Eliminate Barriers to Innovation Act, which the House of Representatives passed on April 20th. However, McHenry’s bill is still pending Senate action.

The bipartisan bill aims to create a digital asset working group which would include the CFTC and the SEC, as well as people in the crypto industry “to bring much needed regulatory clarity to the digital asset ecosystem.”

McHenry isn’t the only government official to criticize the SEC. Quintenz previously tweeted that the U.S. Securities and Exchange Commission (SEC) does not have jurisdiction over “pure commodities or their trading venues,” including “crypto assets.”

This followed a comment by U.S. SEC Chairman Gary Gensler, who stated that stock tokens and “stable value tokens backed by securities” qualify as securities, implying they must be registered and abide by existing federal law.

The U.S. House Committee on Agriculture retweeted Quintenz’s tweet and stated that “#crypto is bigger than the SEC,” urging Congress to “write the rules … to protect investors AND innovation.”

In his own tweet, the former CFTC Chairman Christopher Giancarlo expressed the CFTC was the only agency with the experience to regulate cryptocurrency markets. Giancarlo urged the CFTC to nominate a new chair and begin to work on “sensible cryptocurrency regulation.” The U.S. Senate recently passed highly controversial cryptocurrency rules bundled in a must-pass infrastructure bill which would see innovation stifled in America, as Bitboy Crypto reported.

That Infrastructure Bill along with the crypto rules now heads to the House where it will most likely have multiple changes made to the legislation before a final vote to pass as law.

Bitcoin is currently trading at [FIAT: $44,181.42] DOWN -4.9% in the last 24 hours according to Coingecko at the time of this report.

About Catoshi Nakamoto

c6ea0c3794492f30883e516d39b2597a?s=90&d=blank&r=g U.S. Congressman and CFTC Commissioner Call Out SEC For Its "Power Grab" Over Digital AssetsActivist/Journalist, former writer - We Are Change, The Mind Unleashed, Coinivore, others. Currently writing for - Activist Post and Bitboy Crypto. Not Right or Left Apolitical. I Care About Truths (CATS.) Cryptocurrency enthusiast, I mined and lost 100+ BTC in 2010-2011. I work with - Bitboy, SoMee, CEEK, Presearch, and W3BT aka FMW Media Group. Friend of mostly everyone who isn't a dick. Just A Cool Cat.