Congressman Patrick Henry Condemns SEC’s “Power Grab” of Crypto Exchanges

Divya  |  Aug 12, 2021

Congressman Patrick Henry, a Republican leader on the House Financial Services Committee condemned the US Securities and Exchange Commission’s (SEC) recent demands for extended control over crypto exchanges on Wednesday. Henry called the effort a “blatant power grab” that would stifle American innovation and added:

“We don’t need another backroom deal between Gensler and Elizabeth Warren.”

SEC chair Gary Gensler had reportedly written a letter to Senator Elizabeth Warren calling for additional oversight of all digital asset exchanges to protect investors.

Republican Leader Patrick Henry Slams SEC’s Gary Gensler for Crypto Power Grab

In his response to SEC’s recent letter to Senator Warren, Henry asserted that the SEC chair is “asking for the jurisdiction of all exchanges of digital assets — not all of which are securities.” The North Carolina representative highlighted:

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

He added that policymakers should be thoughtful of regulating the crypto industry because there are many different types of digital assets out there. 

Congressman Henry also mentioned a bill he introduced recently -- the H.R. 1602, the Eliminate Barriers to Innovation Act -- to bring more regulatory certainty to the emerging market. This legislation has already been passed by the House of Representatives in April and is currently pending approval in the Senate.

“We need smart policy, made through a transparent process, to ensure innovation and job creation continue in the U.S,” Rep. Henry emphasized.

US Regulators Move In to Tighten Oversight of Virtual Assets

Recently, regulatory authorities in the US are turning up the heat on digital assets through various proposals. SEC chair, Gensler, a known crypto critic, has repeatedly asked for congressional help with regulation. In a recent letter, Gensler stated:

“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.”

His letter follows the passage of a massive infrastructure bill, which contains highly disputed provisions for crypto taxation. These measures were debated for several days and contested by America’s Blockchain Association as well. However, none of these efforts reached fruition and the bill was passed with what many call “problematic” crypto language.

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