Rep. Tom Emmer has proposed to withdraw funding from the SEC’s pursuit of crypto. In his capacity as a Congressman and a staunch cryptocurrency supporter, he has introduced an amendment.
This amendment is part of the House GOP spending bill, and its goal is clear. It aims to prevent the Securities and Exchange Commission (SEC) from utilizing government resources to target crypto-related businesses.
This restriction would be in effect until Congress provides the necessary clarity on which authority holds jurisdiction over the crypto industry.
Rep. Tom Emmer Proposed Amendment and its Implications for Crypto Regulation
On November 8, Emmer took a significant step by incorporating this amendment into HR 4664. This bill, also known as the Financial Services and General Government Appropriations Act, holds a crucial place in the federal budget.
This amendment, which received unanimous support, has a clear and significant impact. It effectively bars the SEC from expending funds on activities aimed at enforcing regulations concerning digital asset transactions. The rule allows such spending only after future legislation explicitly grants the SEC authority.
Despite the advancement of this amendment, the House’s budget, where it is included, still needs to undergo a reconciliation committee’s review before being ratified.
In his statement on November 8, Emmer made a proposal. He suggested that any “future bad actors” in the digital asset industry should be dealt with by the Department of Justice, the Treasury, and the Treasury’s Office of Foreign Asset Control. He illustrated this suggestion by citing the example of FTX.
Emmer voiced his concern regarding the SEC Chair, Gensler, and his use of the agency’s powers. He suggested that Gensler may be using these powers to pursue a political agenda, which could, in turn, lead to the digital asset industry moving abroad. Emmer firmly asserted that the SEC should not persist on this path.
Republican Lawmakers Seek Budget Cuts and Crypto Legislation as Federal Deadline Approaches
Republican lawmakers are actively working to reduce funding across various federal agencies. On November 7, Representative Tim Burchett made a bold move. He proposed an amendment to reduce the SEC Chairman’s salary to only $1. Additionally, Burchett proposed cuts to the salaries of other officials who have drawn the ire of the GOP.
The budget’s expiration date is November 17, at which point the House and Senate proposals must be harmonized, or temporary funding must be approved to prevent a government shutdown.
With Republican Jim Johnson now presiding as the House speaker, digital asset legislation is regaining attention alongside Federal Budget-related concerns.
Several crypto-related bills are currently awaiting Congressional deliberation. These include the Financial Innovation and Technology (FIT) for the 21st Century Act, the Blockchain Regulatory Certainty Act, the Clarity for Payment Stablecoins Act, and the Keep Your Coins Act.
Crypto Legislation and Government Calls for Action: Recent Developments in the US
On November 7, Senator Ted Budd introduced the Keep Your Coins Act, which ensures the right to maintain self-custody wallets. This legislation came to the Senate after gaining approval from the House Financial Services Committee in July.
On the same day, The Wall Street Journal reported that Deputy Treasury Secretary Wally Adeyemo called on Congress to take action against the use of cryptocurrency for financing terrorism. He stated;
“There are areas where we believe Congress needs to take action. We will collaborate with Congress to secure more tools.”
In an October 17 letter, led by Senator Elizabeth Warren, over 100 legislators urged the Biden administration to take action. Their request was to address the alleged role of cryptocurrencies in financing terrorism.