Eight US lawmakers demand that the SEC stop crippling cryptocurrency and stifling innovation.

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Eight US lawmakers have written to the chairman of the Securities and Exchange Commission (SEC) to express their concerns about how the agency collects data from cryptocurrency companies. The SEC’s “requests” for information, according to the crypto community, are “overburdensome, don’t feel particularly voluntary, and are suffocating innovation.”

U.S. Representatives Tom Emmer, Darren Soto, Warren Davidson, Jake Auchincloss, Byron Donalds, Josh Gottheimer, Ted Budd, and Ritchie Torres have jointly sent a bipartisan letter to the chairman of the U.S. Securities and Exchange Commission (SEC), Gary Gensler, regarding how the SEC obtains information from cryptocurrency and blockchain companies.

Congressman Emmer explained in a tweet the reason behind the letter:

My office has received numerous tips from crypto and blockchain firms that SEC Chair Gary Gensler’s information reporting ‘requests’ to the crypto community are overburdensome, don’t feel particularly …voluntary … and are stifling innovation.

Rep. Warren Davidson tweeted: “We must promote American innovation rather than stifle it with an incoherent mix of bad regulation, selective enforcement, and ongoing inaction.” He added:

I joined Rep. Tom Emmer and colleagues sending a letter to SEC Chair Gary Gensler regarding the SEC crippling crypto in America.

In their letter to Gensler, the lawmakers pointed out: “It appears there has been a recent trend towards employing the Enforcement Division’s investigative functions to gather information from unregulated cryptocurrency and blockchain industry participants in a manner inconsistent with the Commission’s standards for initiating investigations.”

The lawmakers stressed:

We have reason to believe that these requests might be at odds with the Paperwork Reduction Act (PRA).

The letter explains that pursuant to this act, “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.”

Congressman Emmer emphasized:

Crypto startups must not be weighed down by extra-jurisdictional and burdensome reporting requirements. We will ensure our regulators do not kill American innovation and opportunities.