Republican Congressman Calls SEC Chair Gary Gensler As 'Incompetent Cop On The Beat'

Tom Emmer (R-Minn.), a Republican Congressman, launched a scathing attack on U.S. Securities and Exchange, or SEC, Chairman Gary Gensler, calling him an “incompetent cop on the beat.” 

What Happened: Emmer, at a Tuesday hearing held by the House Committee on Financial Services, claimed that Gensler is pushing American firms into the hands of the Chinese Communist Party while putting everyday Americans in harm’s way. 

The Congressman accused the SEC chairman of finalizing "zero rules for crypto companies to comply with, yet abusing the SEC’s enforcement powers against them."

According to Emmer, Gensler failed to take appropriate action when the biggest crypto frauds collapsed, leading to the defrauding of Americans. 

The Congressman also accused Gensler of inappropriate regulation through public statements, which often contradict each other.

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Why It Matters: When the chairman of the House Financial Services Committee, U.S. Rep. Patrick McHenry, a North Carolina Republican, asked if Ethereum ETH/USD the second-largest cryptocurrency, is a security or a commodity, the SEC chair declined to comment, highlighting the persistent lack of legal clarity around the classification of crypto assets. 

Meanwhile, U.S. Congressman Warren Davidson spoke at the conclusion of Gensler's congressional hearing and said that the proposed overhaul of the SEC is a result of Gensler’s “failure to protect investors and abuses of power.”  He called to restructure the SEC and for the removal of Gensler.

Price Action: At the time of writing, ETH was trading at $2,091, down 0.10% in the last 24 hours, according to Benzinga Pro.

Photo: Courtesy of Third Way Think Tank on Flickr

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