Minnesota Representative Tom Emmer, chair of the Congressional Blockchain Caucus, has asked the Securities and Exchange Commission to clarify how it gathers information from cryptocurrency-linked companies, while also putting an end to time-wasting practices such as asking multiple times for the same information.
My office has received numerous tips from crypto and blockchain firms that SEC Chair @GaryGensler’s information reporting “requests” to the crypto community are overburdensome, don’t feel particularly… voluntary… and are stifling innovation.
— Tom Emmer (@RepTomEmmer) March 16, 2022
Currently, the SEC sends out two forms—Form 2866, which asks for company details, and Form 1662 which lays out penalties for withholding said details—which Emmer and several colleagues who co-signed his letter have called into question. Basically, those forms ask for much of the same info.
Citing the Paperwork Reduction Act, Emmer wrote that “in seeking information from the American public, federal agencies must be good stewards of the public’s time, and not overwhelm them with unnecessary or duplicative requests for information.”
Co-signing Emmer’s letter to SEC Chair Gary Gensler were: Warren Davidson of Ohio, Byron Donalds of Florida, Ted Budd of North Carolina, Darren Soto of Florida, Jake Auchincloss of Massachusetts, Josh Gottheimer of New Jersey, and Ritchie Torres of New York.
The letter also asks why the SEC’s enforcement division has been used to investigate unregulated crypto firms, rather than keeping separate the agency’s investigation and enforcement units. Emmer wrote that this “recent trend” is “inconsistent” with how SEC investigations typically are initiated.
Additionally, the letter asks for a year-by-year breakdown of the voluntary document requests sent by the SEC to crypto-linked individuals, entities, and project teams over the past five years. The congresspersons also asked if individuals had been made aware of any informal investigations launched against said persons or firms. Bottom line: Are current SEC actions overburdensome for these individuals and companies?
Emmer and his colleagues asked for a response from the SEC by April 29.
Responding to Emmer’s tweet regarding the letter sent to the SEC, the Blockchain Association praised the “bipartisan effort.”
“These champions,” the group added, “are ensuring the U.S. remains a crypto innovation leader.”
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