Amendment to Prohibit SEC Enforcement Actions: The amendment introduced by Republican House Majority Whip Tom Emmer prohibits the SEC from using taxpayer-funded resources to pursue enforcement actions against the digital asset industry.
Nonpartisan Support: Emmer’s amendment received support from both parties with no opposition as it passed the House today.
Call for Congressional Legislation: The amendment highlights the need for Congress to pass legislation that authorizes regulatory enforcement jurisdiction before the SEC can take action against the digital asset industry.
A recent amendment to the House appropriations bill has sparked controversy in the crypto community. Proposed by Rep. Tom Emmer (R-Minn.), the amendment prohibits the Securities and Exchange Commission (SEC) from using funds for enforcement activities related to digital asset transactions until Congress passes legislation that grants the SEC jurisdiction over this asset class. Emmer cited concerns about the effectiveness and competence of SEC chair Gary Gensler and argued that Congress should have a chance to foster growth in the crypto industry before the SEC takes enforcement action.
Crypto Regulation Amendment Approved by House
Emmer’s amendment was approved by a voice vote in the House, it still needs to be approved by the Democrat-controlled Senate, which is more aligned with Gensler’s stance on crypto regulation. Senate Banking Committee Chairman Sherrod Brown (D-Ohio) has voiced support for Gensler’s use of enforcement actions against crypto firms.
The Blockchain Innovation Project, co-chaired by former Reps. David McIntosh and Tim Ryan, has also weighed in on the issue. They aided Emmer with his amendment and urged the Senate to reach a bipartisan solution that allows blockchain technology to thrive while protecting American consumers and investors.
Debate Sparks Over Crypto Regulations
The debate over crypto regulation comes as the Congress heads towards another budget impasse, with temporary funding set to run out on Nov. 17. Former Speaker of the House Kevin McCarthy (R-Calif.) was fired by his GOP colleagues and replaced with Rep. Mike Johnson (R-La.), who voted against the previous budget extension. The negotiations are sure to be heated, and the crypto industry will be watching closely to see how the issue of regulation is addressed.
Meanwhile, Gensler has announced that his agency has undertaken as many as 150 actions against crypto firms. This suggests that the SEC is doubling down on its efforts to regulate the industry, despite the pushback from some lawmakers and crypto advocates.