Eight U.S. legislators have written a letter asking the Chairman of the U.S. Securities and Exchange Commission to clarify how they collect information about crypto companies. According to the crypto community, the SEC’s “requests” for information “are overburdensome, don’t feel particularly voluntary, and are stifling innovation.”
SEC Wants to Answer US Lawmakers
U.S. U.S.
In a Twitter, Congressman Emmer explained the reasons behind the letter.
My office has received numerous tips from crypto and blockchain firms that SEC Chair Gary Gensler’s information reporting ‘requests’ to the crypto community are overburdensome, don’t feel particularly …voluntary … and are stifling innovation.
Rep. Warren Davidson tweeted: “We must promote American innovation rather than stifle it with an incoherent mix of bad regulation, selective enforcement, and ongoing inaction.” He added:
Rep. Tom Emmer joined his colleagues in writing a letter to Gary Gensler, SEC Chair, regarding how the SEC is destroying crypto in America.
In their letter to Gensler, the lawmakers pointed out: “It appears there has been a recent trend towards employing the Enforcement Division’s investigative functions to gather information from unregulated cryptocurrency and blockchain industry participants in a manner inconsistent with the Commission’s standards for initiating investigations.”
They stressed that:
There are reasons to suspect that the requests could be against the Paperwork Reduction Act.
The letter explains that pursuant to this act, “in seeking information from the American public, federal agencies must be good stewards of the public’s time, and not overwhelm them with unnecessary or duplicative requests for information.”
Congressman Emmer emphasized:
Extra-jurisdictional reporting obligations and heavy burdensome reporting must not weigh down crypto startups. We’ll ensure that our regulators don’t kill American innovation.
This letter asks that 13 questions be answered by the SEC no later than April 29, 2009. You can find the complete list of questions here.
Are you concerned that the SEC may be stifling creativity in the crypto industry? Please let us know what you think in the comment section.
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