Congressman Tom Emmer has stated that the Supreme Court’s decision to overturn Chevron deference significantly limits “the regulatory abuses” of U.S. Securities and Exchange Commission (SEC) Chair Gary Gensler. The ruling is seen as a game changer for the crypto industry and other tech sectors, promising more predictable and grounded regulations. Supreme Court’s Chevron Ruling […]
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Congressman Rand Paul Reintroduces ‘Audit the Fed’ Bill
Congressman Rand Paul reintroduced the Federal Reserve Transparency Act, also known as the “Audit the Fed” Bill, as a standalone piece of regulation into the U.S. Senate. The bill seeks to take the lid off what Paul considers to be the “entirely unknown inner workings” of the U.S. Federal Reserve and its operations.
Senator Rand Paul Announces Reintroduction of Federal Reserve Transparency Act
U.S. Senator Rand Paul from Kentucky announced he was reintroducing the Federal Reserve Transparency Act, also known as the “Audit the Fed” bill, into the U.S. Senate. The regulation aims to bring transparency and oversight to the inner workings of the U.S. Federal Reserve, which Paul criticizes as obscure and almost entirely unknown.
In its current form, the bill would repeal the current statutory protections preventing the organization of a full audit of the Board of the Fed and its banks, ordering the U.S. Government Accountability Office (GAO) to scrutinize the Fed’s actions, transactions, and decisions and report to Congress about the findings.
Paul states that the actions of the Federal Reserve have affected countless lives, as the institution rallied to print billions of dollars during the COVID pandemic, providing money to industry favorites under the guise of “stimulus” packages.
Paul explains that the current inflationary problems, which he attributes to the Fed’s actions, have affected the capabilities of Americans to buy food, turning “basic needs into unattainable luxuries.” He stressed:
The Fed’s persistent cycle of money printing and lending without any form of meaningful oversight may be the cause of many of our economic hardships, such as the struggle of many Americans to afford food.
The act, reintroduced on January 11, has the support of Senators Todd Young, Mike Lee, Ted Cruz, Mike Braun, Chuck Grassley, Roger Marshall, John Barrasso, and Marsha Blackburn and is co-sponsored by Senator Jim Risch.
Paul’s bill is the last attempt in a long line of efforts to try to bring transparency and accountability to the Federal Reserve, with his father, Ron Paul, also being one of the biggest supporters of this kind of action.
What do you think about the Federal Reserve Accountability Act? Tell us in the comments section below.
Congressman Tom Emmer Offers to Help Donald Trump Fight Central Bank Digital Currencies
Congressman Tom Emmer has offered to help former U.S. President Donald Trump fight the creation of a central bank digital currency (CBDC) in the U.S. “I agree with President Trump; CBDCs pose a serious threat to Americans’ right to financial privacy. I look forward to working with him as we continue the fight against the expanding government surveillance state,” the lawmaker stated.
Rep. Emmer Joins Trump in Fight for Americans’ Right to Financial Privacy
House Majority Whip Tom Emmer (R-MN) has expressed support for former U.S. President Donald Trump in the fight against the creation of a digital dollar.
Last week, Trump promised the American people that if he is elected president of the United States in the upcoming election, he will make sure that a central bank digital currency (CBDC) does not get created in the U.S. “As your president, I will never allow the creation of a central bank digital currency … Such a currency would give a federal government … absolute control over your money … This would be a dangerous threat to freedom, and I will stop it from coming to America,” Trump said.
Commenting on Trump’s statement regarding CBDCs, Congressman Emmer wrote on social media platform X Friday:
I agree with President Trump; CBDCs pose a serious threat to Americans’ right to financial privacy. I look forward to working with him as we continue the fight against the expanding government surveillance state.
The lawmaker added in a follow-up post: “Congressional Republicans have been fighting against the implementation of a surveillance-style CBDC. My bill, the CBDC Anti-Surveillance State Act, has 75 cosponsors and we are continuing to build support.”
Several Fed officials and lawmakers question the need for a CBDC. Fed Governor Michelle Bowman, for instance, has yet to see a compelling argument that a digital dollar could solve any of these problems more effectively or efficiently than alternatives, or with fewer downside risks for consumers and for the economy.
The Federal Reserve has begun exploring a digital dollar, but it hasn’t committed to creating one. In September last year, Fed Chair Jerome Powell clarified, “We have not decided to proceed [with a digital dollar] … We see this as a process of at least a couple of years.”
Emmer recently said that Trump will likely become “a lot more” crypto-friendly in his second term as president. Recent data from the decentralized crypto-based predictions platform Polymarket suggests that Donald Trump, the 45th president of the United States, is currently leading with a 48% chance of victory. Several analysts, including those at asset management firm Vaneck, expect the price of bitcoin to hit record highs if Trump wins the U.S. presidential election in November.
What do you think about House Majority Whip Tom Emmer offering to work with Donald Trump to fight against the creation of a U.S. central bank digital currency? Let us know in the comments section below.
Congressman Warren Davidson Rails Against Treasury’s ‘Red Herring Arguments’ On Crypto
Warren Davidson, Vice Chairman of the Subcommittee on Digital Assets, Financial Technology, and Inclusion of the House Financial Services Committee, has rejected the policy suggestions made by the U.S. Treasury on crypto assets, stating these seek to ban digital assets in the U.S. using unworkable compliance requirements as tools for this task.
Warren Davidson Qualifies U.S. Treasury’s Crypto Policy Proposals as ‘Dishonest’
Warren Davidson, Vice Chairman of the Subcommittee on Digital Assets, Financial Technology, and Inclusion of the House Financial Services Committee, rejected the policies presented by the U.S. Treasury to regulate crypto assets. In a recent opinion post titled “Setting the record straight and debunking unworkable illicit finance proposals,” Davidson explains that these suggestions, very similar to the proposals presented by Sen. Elizabeth Warren, seek to disarm the cryptocurrency industry in the U.S.
The suggested policies would classify wallet providers, miners, validators, and other network participants as a new group of crypto financial institutions, subject to the same reporting standards that traditional finance institutions do.
Davidson explains that Sen. Warren’s allegations indicating even validator node operators “pose national security concerns” show a degree of ignorance “unbecoming of any policymaker.”
On the objective of these measures, he stated:
It’s an attempt to capitalize on others’ ignorance by pursuing a backdoor pathway to effectively ban digital assets in the United States through a crushing and entirely unworkable compliance burden.
Furthermore, Davidson stresses that blockchain and cryptocurrency are not the preferred methods for terrorism financing, given that recent media reports incorrectly pointed out that the terrorist group Hamas had raised over million in digital assets. He claims this notion has been used to push this kind of policy that seeks to dismantle the future of the crypto industry in the U.S.
Davidson argued that the first measure to combat illicit movements in crypto should be to bring more crypto companies to the U.S., a goal that will be difficult to fulfill if these policies get approved. “Their purposefully unworkable framework will drive companies and capital offshore,” he concluded.
What do you think about Warren Davidson’s take on crypto policing? Tell us in the comments section below.
Congressman Calls for Gensler’s Removal After SEC Sues a Crypto Exchange Twice in 10 Months
A U.S. lawmaker has urged Congress to pass his bill that would fire U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler. This call followed the securities regulator filing a second lawsuit against crypto exchange Kraken this year after the exchange paid million to settle the initial lawsuit.
Lawmaker Seeks to Fire Gary Gensler
Congressman Warren Davidson (R-OH) has called on Congress to pass his bill that would fire Gary Gensler as the chairman of the U.S. Securities and Exchange Commission (SEC) after the securities regulator sued crypto exchange Kraken twice in 10 months. Rep. Davidson wrote on social media platform X on Tuesday:
Now would be a great time to pass my SEC Stabilization Act and fire Gary Gensler.
On Monday, the SEC filed its second lawsuit this year against Kraken for operating a crypto trading platform “as an unregistered securities exchange, broker, dealer, and clearing agency.” The initial charge in February pertained to the crypto exchange’s staking program, resulting in a settlement with the SEC and a million payment by Kraken.
Jesse Powell, Kraken’s co-founder and former CEO, wrote on social media platform X on Monday: “USA’s top decel is back with another assault on America … I thought we settled all their concerns for m in Feb. Now they’re back for seconds?” He stressed:
Message is clear: M buys you about 10 months before the SEC comes around to extort you again. Lawyers can do a lot with M but the SEC knows that a real fight will likely cost 0M+, and valuable time. If you can’t afford it, get your crypto company out of the U.S. warzone.
Commenting on Powell’s statements, lawyer John Deaton opined on X: “Gary Gensler is a despicable and dishonorable regulator. He knew that Kraken believed it was buying peace for the M.” He explained that in a court case, “M takes you only so far, like maybe only 1/3 of the way — if you’re lucky. Ask Ripple and Brad Garlinghouse who spent 0M plus so far, and is still paying millions in legal fees.”
Rep. Davidson introduced the SEC Stabilization Act in June to remove SEC Chair Gary Gensler in order to safeguard U.S. capital markets “from a tyrannical chairman.” He explained that the bill would “remove the role of chairman,” noting: “It would preserve the current commissioners but it would add a sixth commissioner so there would be no more than three from any one political party.”
Do you think SEC Chair Gary Gensler should be fired? Let us know in the comments section below.
US Congressman Warren Davidson: ‘Banning CBDC Is Essential to America’s Fintech Future’
U.S. Congressman Warren Davidson has railed against central bank digital currencies (CBDC), stating that enacting a ban on these instruments is “essential” for the future of the fintech industry in America. Davidson explained that many people wrongly conflate cryptocurrencies with CBDC when these are two different concepts.
Congressman Warren Davidson: ‘CBDC Is Evil’
Congressman Warren Davidson has warned about the dangers that issuing a central bank digital currency (CBDC) represents for the financial technology industry in America. Davidson vocally criticized the use of these tools, reaffirming his opposition to CBDC by stating on social media that:
At least most agree that CBDC is evil – the financial equivalent of the Death Star. Don’t become an accomplice to anyone designing, building, testing, developing, or establishing CBDC.
Davidson, part of the House Financial Services Committee, emphasized that many people wrongly conflated the concept of CBDC with Bitcoin and that banning the existence of a CBDC in America would be “essential” to America’s fintech future.
Davidson’s opposition to CBDC is not new, as the representative has railed against the concept before, stating that “central bank digital currency (CBDC) corrupts money into a tool for coercion & control,” explaining that there was no way of implementing CBDCs in America without legislation.
People, Not Tokens
The congressman noted that the tech behind these tools was not the problem, as he pinned responsibility on the human resource behind CBDC projects. Davidson stated:
Tokenized assets are not the problem. It’s the people. Entities (including the Federal Reserve, Ripple, Consensys) and influencers are actively working on CBDC projects.
Davison concluded by announcing that he was working on passing a regulation that would “criminalize designing, building, testing, developing, or establishing a central bank digital currency.”
While the Federal Reserve is now openly considering a digital dollar as “a means to expand safe payment options, not to reduce or replace them,” it recognizes that it has taken “no decision on issuing a central bank digital currency (CBDC) and would only proceed with the issuance of a CBDC with an authorizing law.”
Several bills have been introduced to stop the hypothetical issuance of a digital dollar. In February, Representative Tom Emmer introduced the CBDC Anti-Surveillance State Act to “halt efforts of unelected bureaucrats in Washington, D.C. from issuing a central bank digital currency (CBDC) that strips Americans of their right to financial privacy.”
Also, in March, Senator Ted Cruz introduced a bill to stop the Federal Reserve from developing a CBDC.
What do you think about Warren Davidson’s thoughts on CBDC? Tell us in the comments section below.
Republican Congressman Seeks to Oust SEC Chair Gensler With SEC Stabilization Act
Warren Davidson, the Republican congressman who first introduced the legislation in mid-April, has filed the SEC Stabilization Act to remove Gary Gensler, the current chair of the U.S. Securities and Exchange Commission (SEC). Davidson insists the act aims to safeguard U.S. capital markets “from a tyrannical chairman.”
Legislation Filed to Remove SEC Chair Gensler in Effort to Safeguard U.S. Capital Markets
Several Republican lawmakers have openly criticized SEC chairman Gary Gensler for his performance in leading the federal securities regulatory division. Among them is congressman Warren Davidson (R-OH), who recently announced his intention to introduce legislation to remove Gensler from his position. Less than two months later, Davidson filed the SEC Stabilization Act and shared the news on Twitter on June 12th.
“U.S. capital markets must be protected from a tyrannical chairman, including the current one,” Davidson said in a statement. “That’s why I’m introducing legislation to fix the ongoing abuse of power and ensure protection that is in the best interest of the market for years to come. It’s time for real reform and to fire Gary Gensler as chair of the SEC.”
Davidson also announced that U.S. congressman Tom Emmer, a Republican from Minnesota, has joined him in supporting the bill. “American investors and industry deserve clear and consistent oversight, not political gamesmanship,” Emmer said. “The SEC Stabilization Act will make common-sense changes to ensure that the SEC’s priorities are with the investors they are charged to protect and not the whims of its reckless chair.”
Criticism of Gensler’s job performance extends beyond Republican politicians, with Democratic presidential hopeful Robert F. Kennedy Jr. also expressing his dissatisfaction with the U.S. securities regulator. Kennedy stated last month that the “SEC’s function now is not to protect the American people, but it’s to protect the banks.” The presidential candidate also advocated for a leader at the SEC who is supportive of cryptocurrencies.
Davidson’s proposal aims to establish a new structure where the responsibility of producing current policy would shift from the SEC chair to the six SEC commissioners, who would be involved in rulemaking, enforcement, and investigations. Patrick McHenry, the chair of the United States House Financial Services Committee, has also voiced criticism of Gensler in recent times.
During an oversight hearing on April 18, McHenry posed a question to Gensler regarding the classification of ethereum (ETH) as a security. At the time, Gensler refrained from providing a direct answer to whether he believed ETH to be a security.
What are your thoughts on the proposed SEC Stabilization Act and the ongoing debate surrounding the performance of SEC Chair Gary Gensler? Share your thoughts and opinions about this subject in the comments section below.
Republican Congressman Tom Emmer Queries FDIC on Alleged Efforts to Purge Crypto Activity from US
On Wednesday, Tom Emmer, the U.S. Republican congressman from Minnesota, revealed he sent a letter to Martin Gruenberg, the chairman of the Federal Deposit Insurance Corporation (FDIC), regarding reports that the FDIC is “weaponizing recent instability” in the U.S. banking industry to “purge legal crypto activity” from the United States. Specifically, Emmer asked Gruenberg if the FDIC instructed banks not to provide banking services to cryptocurrency firms.
GOP Majority Whip Emmer Questions FDIC’s Involvement in Purging Legal Crypto Activity
Tom Emmer, a Republican politician from Minnesota, sent a letter to the chairman of the FDIC questioning whether the agency directed banks not to provide services to digital currency businesses. “Recent reports indicate that federal financial regulators have effectively weaponized their authorities over the last several months to purge legal digital asset entities and opportunities from the United States,” Emmer’s letter read.
The Minnesota congressman added:
Individuals from across the industry, including former House Financial Services Committee chairman Barney Frank highlighted the targeted nature of these regulatory efforts to ‘single out’ financial institutions and ‘send a message to get people away from crypto.’
Emmer has been querying other U.S. lawmakers and agencies about their actions against crypto businesses, including questioning Securities and Exchange Commission (SEC) chair Gary Gensler about actions taken during the arrest of FTX’s disgraced co-founder, Sam Bankman-Fried. The politician has also introduced legislation that would prohibit the U.S. central bank “from issuing a [central bank digital currency] directly to anyone.”
Emmer’s comments about former lawmaker Barney Frank stem from the Signature Bank board member’s commentary about being surprised by Signature’s collapse. Frank said he suspected there was an “anti-crypto message” behind the bank’s demise. The New York State Department of Financial Services disagrees and explained that placing Signature into receivership of the FDIC had “nothing to do with crypto.”
Despite the regulator’s denial of such accusations, Emmer’s letter to the FDIC’s Gruenberg implicitly asks the chairman whether the FDIC specifically directed banks not to provide banking services to cryptocurrency firms.
”Have you communicated — explicitly or implicitly — to any banks that their supervision will be more onerous in any way if they take on new (or maintain existing) digital asset clients,” the politician asked. Emmer is insisting that Gruenberg provide the information as soon as possible and no later than 5:00 p.m. on March 24, 2023.
What are your thoughts on the regulation of cryptocurrency in the United States and the potential impact it could have on the future of the industry? Do you believe that regulators are unfairly targeting crypto businesses? Share your opinions in the comments section below.
Why This U.S. Congressman Compared Bitcoin Investment With Playing The Lottery
The U.S. Congress Oversight and Investigations Subcommittee held a hybrid hearing on Bitcoin and cryptocurrencies. The institution summoned Alexis Goldstein, Director of Financial Policy for the Open Market Institute, Sarah Hammer, Managing Director at the Stevens Center for Innovation in Finance, Peter Van Valkenburgh, Director of Research at Coin Center, and others.
Adam Cochran, a partner at Cinneamhain Ventures, made a detailed summary of the event. The members of the Committee made their opening statements with Congressman Tom Emmer defending Bitcoin and the potential of blockchain technology to create more trust and transparency in traditional systems.
Similarly, Emmer criticized the lacked clarity on regulation and the danger of U.S. companies leaving to other territories consequently. The representative called for answers on a key topic: the classification of digital assets and whether they will be treated as securities, commodities, or currencies.
However, not every member of the Committee was an advocate of Bitcoin. Representative Brad Sherman claimed that “he would rather people make ‘bets’ in equity markets or the California lottery” than invest in BTC or cryptocurrencies. He added:
(…) the only advantage of crypto is avoiding KYC and its supported by anarchists for tax evasion.
Representative Anthony Gonzalez seemed to support cryptocurrencies and encouraged everyone to listen to the opinions of all the members in the Committee and not just the hostiles ones. He classified the idea of investing in the California lottery over Bitcoin as “ridiculous”.
U.S. Representive @RepAGonzalez, with a line of questioning that flips the typical argument against #Bitcoin on its back, "99.9% of money laundering with fiat currencies go unprosecuted" pic.twitter.com/cvbS3sfeHM
— Documenting Bitcoin 📄 (@DocumentingBTC) June 30, 2021
Does Bitcoin Need New Regulations?
Amongst the speakers, Valkenburgh’s presentation highlighted the importance of Bitcoin as a tool that aids different human rights causes around the world. He cited the Nigerian Feminist Coalition in Nigeria to demonstrate the power of receiving money with a censorship resistance network anywhere in the world.
10/ wow Peter just cited the Nigerian Feminist Coalition / #EndSARS movement as an example of bitcoin powering freedom and censorship resistance around the world – love this being on the congressional record
(see this amazing podcast w @AnitaPosch – https://t.co/f6J15x3wsg)
— Meltem Demir◎rs (@Melt_Dem) June 30, 2021
Valkenburgh believes there is sufficient regulation in the crypto industry. His argument had two main points: over the past 10 years, several federal and local governments issued their own legislation towards this new asset class. He added that technologies within the blockchain are a type of regulation.
(…) onramps, offramps and exchanges, are money transmitters, banks and trusts, and are all under the BSA, report to FINRA and require KYC/AML.
In BTC’s decade of existence, there have been no reports of a U.S.-based exchange that has suffered major losses. Regulators in this country have swiftly punished fraud, money launders, and other crimes related to the industry.
Valkenburgh thinks that central bank digital currencies (CBDCs) from China and other “totalitarian governments” will launch in the coming years. Thus, he called on the U.S. Congress to accept financial inclusion or “cede” the influence of these governments. Representative Warren Davidson agreed.
U.S Representive @WarrenDavidson, "China is building the creepiest surveillance tool in history…that’s why we should be embracing decentralized ledger technology." pic.twitter.com/PdorEcBikX
— Documenting Bitcoin 📄 (@DocumentingBTC) June 30, 2021
At the time of writing, BTC trades at ,856 with losses in the lower timeframes. The first cryptocurrency by market cap has experienced a downtrend in the past days and could face further unless it makes a significant push towards former highs.
![Bitcoin BTC BTCUSD](https://www.newsbtc.com/wp-content/uploads/2021/06/Bitcoin-BTC-BTCUSD-25-860x512.png)
U.S. Congressman Davidson Says Bitcoin Is “Required to Defend Freedom”
While many in Washington D.C. are hesitant to give Bitcoin their support, a Congressman recently took to Twitter to support this nascent space.
Related Reading: Crypto Tidbits: Bitcoin Holds k, Ethereum DeFi Gains Traction, Trump Talked BTC in 2018
Congressman Throws Weight Behind Bitcoin, Calls It “Sound Money”
On June 22nd, the Congressman of Ohio’s eighth district, Warren Davidson, tweeted the message seen below. “Sound Money is required to Defend Freedom,” Davidson wrote, including a message of Bitcoin on top of U.S. dollars.
#SoundMoney is required to #DefendFreedom. pic.twitter.com/XDF8rtHB33
— Warren Davidson (@WarrenDavidson) June 22, 2020
Many in the cryptocurrency space were quick to thank Davidson for this tweet. Meltem Demirors of CoinShares, Hodlonaut, and Brandon Quittem are among those that praised the Congressman for supporting Bitcoin.
This is far from the first time Davidson has publicly supported cryptocurrencies.
Davidson previously told Pierre Rochard and Michael Goldstein, two Bitcoin commentators and supporters, that Facebook should use BTC instead of Libra.
The politician also branded altcoins “shitcoins” in a Congressional hearing, further cementing his support for the leading cryptocurrency.
President Trump Isn’t a Fan
Davidson and others in Washington D.C. are supportive of Bitcoin and cryptocurrencies but President Trump is not a fan. Far from.
According to the Washington Examiner, the U.S. leader was critical of the leading cryptocurrency as early as May of 2018. He told Treasury Secretary Steven Mnuchin to “go after Bitcoin” during a May 2018 meeting on China.
This revelation that Trump has been against Bitcoin since 2018 was revealed in an excerpt from the book The Room Where It Happened. The book, by former national security advisor John Bolton, has yet to be published due to pressure from the Department of Justice.
Trump’s skepticism of cryptocurrencies is culminating in regulatory moves to control this nascent industry.
The White House’s budget proposal for the fiscal year of 2021 commented on crypto. It said that the United States Secret Service — which actually enforces many financial crimes — should be returned to the Treasury.
The proposal also suggested that this move will “create new efficiencies” in how the Secret Service enforces cryptocurrency-related crimes.
Secretary Steven Mnuchin also told CNBC in 2019:
“We’re looking at all of the crypto assets. We’re going to make sure we have a unified approach and my guess is that there are going to be more regulations that come out from all these agencies.”
He later said that the Financial Crimes Enforcement Network (FinCEN) will soon roll out “significant new requirements” for the cryptocurrency industry.
We want to make sure that technology moves forward but, on the other hand, we want to make sure that cryptocurrencies aren’t used for the equivalent of old Swiss secret number bank accounts.
Related Reading: Buying Bitcoin at k or k Won’t Matter in 2 Years: Fund Manager Explains
Featured Image from Shutterstock Tags: btcusd, xbtusd, btcusdt U.S. Congressman Davidson Says Bitcoin Is "Required to Defend Freedom"