Rep. Tom Emmer Criticizes SEC Chairman Gensler for Alleged Wall Street Bias
Summary:
U.S. representative Tom Emmer has criticized SEC chairman Gary Gensler at a House Financial Services Committee hearing. Emmer alleged Gensler's bias towards Wall Street undermines innovation, competition, and ordinary Americans. The congressman, a noted cryptocurrency advocate, also hinted at how Gensler's long tenure at Goldman Sachs could impede his impartiality as a regulator. According to Open Secrets data, Emmer has received considerable contributions from the securities and investment trades, including prominent cryptocurrency investor, Andreessen Horowitz.
During a recent House Financial Services Committee hearing on September 27, U.S. Representative Tom Emmer publicly criticised Gary Gensler, chairman of the Securities and Exchange Commission. Emmer accused Gensler of strongly favoring Wall Street, while overlooking the importance of innovation, competition, and everyday Americans' interests. Emmer interrogated Gensler, making numerous references to his extensive history in finance which spanned 18 years, including a significant tenure at Goldman Sachs as partner and co-head of finance. He questioned if Gensler's strong connections within the finance sector could hinder his capability to effectively regulate without bias. Emmer queried: “With your extensive background in one of the world's largest banks and the significant personal wealth you accumulated during your time there, do you believe you can regulate without bias, refraining from preferential treatment towards large financial entities?” As per the hearing’s transcript, Emmer reiterated that his line of questioning wasn't rooted in any concerns related to a speech Gensler made last year where he stated that several bank executives had shared their worries about mass movement of funds by depositors from their accounts to crypto-related exchanges and wallets. Gensler's responses were restricted to a simple 'yes' or 'no', without any room for explanation or context. Despite this, he assured he could certainly regulate without bias. Congressman Emmer, an activist for cryptocurrency, has been advocating for clearer regulatory guidelines within America, especially following the SEC's vigorous scrutiny of crypto companies that began in 2022, post the fall of cryptocurrency exchange FTX. Emmer's financial contributors from 2021-2022 reveal leading crypto investor, venture capital firm Andreessen Horowitz. Open Secrets data indicates that contributions from securities and investment sectors to Emmer stood at around $418,020. Furthermore, during the hearing, Rep. Patrick McHenry proposed that the SEC might face a subpoena regarding documents associated with ex-FTX CEO Sam Bankman-Fried. McHenry claimed that Gensler had intentionally tried to suffocate the digital asset environment, and had made attempts to withhold transparency with Congress, specifically in relation to the connections linking the commission, FTX, and Bankman-Fried.
Published At
9/27/2023 7:15:00 PM
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