Benzinga - Congressman Tom Emmer (R-MN) criticized Securities and Exchange Commission (SEC) Chair Gary Gensler on Wednesday, suggesting that Gensler's approach to regulation is biased in favor of large financial institutions and detrimental to innovation.
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During the Financial Services Committee hearing, Emmer questioned Gensler's impartiality as a regulator, given his extensive 18-year career at Goldman Sachs (NYSE: GS), where he held several positions and amassed considerable wealth.
Emmer pointedly asked, "But given your 18-year career at one of the biggest banks in the world and the personal financial fortune you amassed there, do you think it’s possible for you to serve as an impartial regulator and not favor large financial intermediaries?"
Gensler defended his position, asserting his commitment to protecting American investors in a field "rife with fraud and manipulation."
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Emmer also referenced a statement by Gensler about bank executives expressing concerns over the movement of funds from traditional bank accounts to crypto-related platforms.
Challenging Gensler's regulatory approach, Emmer asked, "Mr. Gensler, can you assure this Committee that your style of regulation by harassment toward digital asset innovation is to the benefit of every American and not driven by your desires to protect industry incumbents?"
Emmer expressed his belief that Gensler is "not an impartial regulator" and accused him of prioritizing the interests of large financial institutions over innovation and the well-being of everyday Americans.
He emphasized the need for the traditional financial system to evolve alongside the emerging digital asset ecosystem.
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