U.S. Representative Tom Emmer criticized Gary Gensler, the Chairman of the Securities and Exchange Commission (SEC), during a hearing before the House Financial Services Committee on September 27. Emmer argued that Gensler has shown loyalty to Wall Street "at the clear expense of innovation and competition" and the interests of ordinary Americans.
During the hearing, Emmer alluded to Gensler's background in finance, which includes an 18-year tenure at Goldman Sachs, where he served as a partner and co-head of finance. Emmer suggested that Gensler's ties to the financial industry could limit his ability to act as an impartial regulator. He asked if Gensler believed he could regulate impartially without favoring large financial intermediaries, to which Gensler responded, "Of course, sir."
Emmer then referred to a speech Gensler made in which he mentioned concerns raised by bank executives about the movement of funds from bank accounts to cryptocurrency-related exchanges and wallets. Emmer did not allow further elaboration, asking Gensler to respond with a simple yes or no. Gensler's response was not provided in the transcript.
Rep. Emmer is known for his advocacy of cryptocurrencies and has called for regulatory clarity in the United States. He has been critical of the SEC's crackdown on cryptocurrency companies, which began in 2022 following the collapse of the cryptocurrency exchange FTX. Emmer's top financial contributors between 2021 and 2022 included venture capital firm Andreessen Horowitz, a prominent investor in the cryptocurrency space. According to Open Secrets data, the securities and investment industry contributed $418,020 to Emmer's campaign during that period.
During the same hearing, Representative Patrick McHenry suggested the possibility of subpoenaing the SEC for documents related to former FTX CEO Sam Bankman-Fried. McHenry accused Gensler of working to stifle the digital asset ecosystem and being uncooperative in providing transparency regarding the relationship between the SEC, FTX, and Bankman-Fried.
