- “Gary Gensler is protecting no one,” says Congressman Tom Emmer.
- Emmer believes that Gensler’s regulation through enforcement strategy hurts Americans.
- “Crypto intermediaries need to comply with our securities laws,” says Gensler.
Earlier today, Congressman Tom Emmer expressed his take on Securities and Exchange Commission (SEC’s) chair Gary Gensler’s vouching for SEC’s action in a tweet.
.@GaryGensler is once again late to the game, “protecting” no one. Quite clear that his political “regulation through enforcement” strategy hurts everyday Americans. https://t.co/shJ03Zar5p— Tom Emmer (@RepTomEmmer) January 13, 2023
Emmer pokes at Gensler stating that “he [Gensler] is once again late to the game, ‘protecting’ no one.” He further calls out Gensler, saying that it is quite clear that his [Gensler’s] political “regulation through enforcement” strategy hurts everyday Americans.
Yesterday, the SEC charged Genesis Global Capital, LLC and Gemini Trust Company, LLC for the unregistered offer and sale of securities to retail investors through the Gemini Earn crypto asset lending program.
The SEC’s complaint alleges that the Gemini Earn program constitutes an offer and sale of securities under applicable law and should have been registered with the Commission.
SEC chairman Gary Gensler tweeted about it announcing its action taken against Genesis and goes on to explain the importance of SEC’s securities law in a 2-min long clip to which Emmer had reacted.
We @SECGov charged Genesis & Gemini for the unregistered offer & sale of crypto asset securities through Gemini Earn. Crypto intermediaries need to comply with our securities laws. This protects investors. It promotes trust in markets. It’s not optional. It’s the law.— Gary Gensler (@GaryGensler) January 12, 2023
Crypto assets worth billions of dollars have been raised by Genesis and Gemini from a wide range of investors. The cryptocurrency traders have allegedly exercised discretion in how to use investors’ crypto assets to generate revenue and pay interest to Gemini Earn investors.
According to the complaint, Genesis would not allow its Gemini Earn investors to withdraw their crypto assets. Due to the volatility in the crypto asset market, Genesis did not have sufficient liquid assets to meet withdrawal requests.
Gensler remarks, “We allege that Genesis and Gemini offered unregistered securities to the public, bypassing disclosure requirements designed to protect investors.”
Investigations into other securities law violations and other entities and persons relating to the alleged misconduct are ongoing.
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