US senator blasts SEC for out-of-court actions against crypto companies

Senator Emmer pointed to the SEC's politicization of regulations and called them power-hungry regulators who discourage bona fide regulation.

Tom Emmer, the Republican Senator from Minnesota, has become the latest politician to criticize the United States Securities and Exchange Commission (SEC) for its unethical actions against crypto companies.

Emmer released a video on Tuesday showing his conversation at the House Financial Services Committee, where he accused the SEC of politicizing regulations. He then questioned SEC Director of Enforcement Gurbir Grewal about the SEC's unethical "industry sweeps" against crypto companies.

SEC director of enforcement admits SEC cracks down on companies outside of its jurisdiction. Absolutely unacceptable. pic.twitter.com/wRQU54Ov6v

The senator further questioned whether these sweeps against crypto firms fall within the jurisdiction of the SEC and what action the commission takes against firms that do not volunteer for such voluntary questioning. Grewal admitted to using enforcement action against companies that are outside of his jurisdiction. Emmer said the SEC was using its Enforcement branch to unconstitutionally expand its cryptographic jurisdiction.

Emmer also accused SEC Chairman Garry Gensler of luring and threatening companies, he said:

“Under Gensler’s presidency, the SEC has become a power-hungry regulator, politicizing law enforcement, getting companies to ‘come in and talk’ to the Commission, then hitting them with enforcement action , discouraging cooperation in good faith."

Emmer said the SEC's behavior was absolutely unacceptable and believes that the regulator fails to regulate in good faith, especially with respect to the digital asset market.

Related: Lummis-Gillibrand Crypto Bill Likely Delayed Until Next Year

Brad Sherman, the congressman who previously called for a ban on cryptocurrencies in the United States, also