Congressman Tom Emmer has made significant strides in his efforts to curtail the authority of the United States Securities and Exchange Commission (SEC) regarding the enforcement of regulations on digital assets. Emmer has introduced an amendment to HR 4664, also known as the Financial Services and General Government Appropriations Act, which constitutes the federal budget. This amendment, which passed unopposed, specifically restricts the SEC from utilizing funds for enforcement activities related to digital asset transactions until Congress passes future legislation granting the agency explicit jurisdiction in this realm.
However, it’s important to note that the inclusion of this amendment in the House’s budget is subject to potential revisions during the reconciliation process before final approval.
Emmer Calls for Alternate Agencies to Address Digital Asset Wrongdoings
In a statement released on November 8, Congressman Emmer emphasized that instead of the SEC, the Department of Justice, the Treasury, and the Treasury’s Office of Foreign Asset Control should take the lead in addressing any potential misconduct within the digital asset industry. Emmer expressed concerns that SEC Chair Gary Gensler’s actions could inadvertently drive innovation and investment opportunities in the crypto sector to offshore locations.
“My amendment prohibits the SEC from using taxpayer-funded resources to pursue enforcement actions against the digital asset industry until Congress passes legislation that authorizes regulatory enforcement jurisdiction,”
It is worth mentioning that Republican lawmakers have been advocating for reduced funding across various federal agencies. Representative Tim Burchett, for instance, recently suggested an amendment to reduce the salary of SEC Chairman Gensler to just $1. Burchett’s proposal also targeted other officials who have faced criticism from the GOP.
The budget, which is set to expire on November 17, will undergo reconciliation between the House and Senate proposals to avoid a potential government shutdown. This period provides an opportunity for digital asset legislation to gain traction, especially with Republican Jim Johnson assuming the role of House speaker.
Awaiting Attention: Key Crypto-Related Bills
There are several crypto-related bills currently awaiting attention in Congress, including:
- The Financial Innovation and Technology (FIT) for the 21st Century Act
- The Blockchain Regulatory Certainty Act
- The Clarity for Payment Stablecoins Act
- The Keep Your Coins Act
One notable bill is the Keep Your Coins Act, recently introduced by Senator Ted Budd, which aims to safeguard the right to maintain self-custody wallets. This bill has already passed the House Financial Services Committee.
Furthermore, concerns about the potential misuse of cryptocurrencies for funding terrorism have prompted calls for action. Deputy Treasury Secretary Wally Adeyemo urged Congress to crack down on such activities during the annual meeting of the Securities Industry and Financial Markets Association. Senator Elizabeth Warren spearheaded a letter signed by over 100 legislators, urging President Joe Biden’s administration to address the alleged role of cryptocurrencies in financing terrorism.
