US Congress is Concerned About SEC Pressure on Cryptos

Eight members of the US House of Representatives have pointed out in a letter to the head of the SEC, Gary Gensler, the groundlessness of the investigations the commission is conducting against cryptocurrency-related companies.

The appeal has been prepared by Republican Tom Emmer, and it has been backed by three more deputies from the Republican Party and four from the Democratic Party. In the letter, they note the investigations are “burdensome” and pressure from officials hinders the development of the industry. He said:

“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.”

Emmer claims the watchdog is abusing its investigative powers and unnecessarily overburdening startups with paperwork.

Some members of the US Congress believe the SEC may be violating one of the federal laws that limits the amount of information an individual or organization can provide to a federal agency.