Republican Congressman Tom Emmer, who also serves as majority whip in the House of Republicans, has been lashing out at Securities and Exchange Commission Chair Gary Gensler for implementing Staff Accounting Bulletin (SAB) 121.
Emmer stands against regulatory overreach by SEC
Emmer laments that Gensler was not pursuing the SEC’s missions of protecting investors and ensuring reasonable efficiency in the capital markets. He said he feels the new rules, especially on crypto assets, are likely to give too much regulatory control over innovations and market efficiency.
Emmer’s criticism is SAB 121—a regulatory action that, places limits on banks in terms of how transparent they can be about their investments in cryptocurrencies. Those restrictions, Emmer believes, could actually damage market efficiency he says the mission of the SEC is supposed to make markets fair, orderly, and, most importantly, efficient.
Emmer leads republican concerns
His concerns are specific instances of a wider concern inside the Republican Party that broadening regulation will come with the baggage of damage to capital markets.
Emmer accused Gensler of overstepping his bounds to regulate cryptocurrency in a way for which the SEC does not have the statutory authority. Emmer said a line must be drawn between what is guidance for regulatory clarity and what represents an intent of Congress, something he feels the SEC is broadly interpreting.
Emmer is on the front line of a clash over what proper regulation requires to encourage innovation on one side and ensure market safety on the other. While some proponents call for firm oversight that will protect investors and keep markets safe, opponents like Emmer caution against creeping regulatory overreach that will stymie entrepreneurial activity and hold technological progress back.