Congressman introduces amendment to limit SEC’s regulation of digital assets

Congress’ House Majority Whip and representative for Minnesota’s 6th District, Tom Emmer, has taken to address what he sees as regulatory overreach by introducing an amendment that would prevent the U.S. Securities and Exchange Commission (SEC) from enforcing digital asset regulations until adequate legislation is in place.

Emmer’s amendment is framed as a response to what he considers excessive regulatory practices that are, in his words, “crushing” the capitalist market, particularly in the digital asset sector. He argues that the SEC has overstepped its boundaries and that an amendment is needed to grant the SEC proper jurisdiction over the digital asset class.

The amendment seeks to restrict the SEC’s use of taxpayer-funded resources for enforcement activities related to digital asset transactions until Congress formally passes legislation providing clear jurisdiction over this asset class.

His proposal holds SEC Chair Gary Gensler accountable for perceived ineffectiveness. He contends that Gensler has taken actions without proper legislative backing, which, in turn, has hindered the industry’s growth.

Emmer criticizes the SEC’s failure to provide a legal framework, leaving businesses and investors uncertain. He points out that while the SEC has initiated various legal actions and investigations, most notably on Coinbase, it has not provided comprehensive guidelines for the digital asset market to follow.

Furthermore, he highlights the SEC’s recent actions, including legal cases against industry figures, lacking clear legal guidelines. He references the SEC’s failed case against Ripple as well as its reluctance to act on Grayscale’s Bitcoin ETF application.