Rep. Tom Emmer (R-Minn.) blasted the Securities and Exchange Commission’s (SEC) perceived overreach in its cryptoregulation practices during a congressional hearing, Crypto Briefing reported. SEC Division of Enforcement Director Gurbir Grewal admitted in the hearing that the regulatory body has routinely acted against cryptoindustry participants in ways that may lie outside of its jurisdiction. When asked by Rep. Emmer how the SEC would react to a cryptocompany not answering a sweep letter (a request from regulators for companies to produce documents on a voluntary basis) because the company itself doesn’t fall within the SEC’s jurisdiction, Grewal answered that the agency could “proceed with a subpoena, and then a subpoena enforcement action.” “We’re not limited by our jurisdiction when we’re collecting evidence,” Grewal said. “We follow the evidence wherever it leads us to.” The answer prompted a strong rebuke from Rep. Emmer, who declared that SEC Chair Gary Gensler had in the past ordered sweep letters to be sent to cryptoindustry participants in order to “jam them into a violation” and even “make it a ‘bloodbath’ for [companies that do not respond].” The SEC’s approach to crypto has been coming under fire from multiple sides.
