The congressman pointed out the miscalculations of the head of the SEC against Binance


Chapter SEC Gary Gensler, instead of “pulling” Binance “in previous years”, focused on Kim Kardashian’s involvement in illegal advertising of the crypto project. This was stated in an interview with DL News by Congressman Patrick McHenry.

The chairman of the House Financial Services Committee and co-sponsor of two bills aimed at addressing regulatory uncertainty in the digital asset industry has admitted that he is not a “Binance fan”.

The legislator noted that Gensler should have acted faster in order to “punish” the world’s largest crypto exchange.

“The platform is an illegal entity that conducts illegal financial transactions. We could go after the “bad players” much more effectively. Frankly, Binance should have been liquidated many years ago.” he pointed out.

McHenry agreed with the prediction that federal prosecutors would file criminal charges against the platforms. He jokingly lamented that the SEC should have taken action rather than prosecute Kim Kardashian.

As the hearings showed, McHenry’s proposed digital asset law divided Republicans and Democrats. According to the publication, the former are mainly in favor of a regime that is focused on cryptocurrencies, while the latter support Gensler in his actions.

“The bill will allow crypto firms that are currently being sued for violating our securities laws to continue doing pre-registration business. The document appears to suspend any SEC enforcement actions against companies, even if they have committed fraud.” – said the head of the Senate Banking Committee, the representative of the Democrats Maxine Waters.

Republican congressman and co-sponsor of a bill to fire Gensler and restructure the agency, Warren Davidson, believes that the head of the Commission has exceeded his authority.

“Most of the problems lay in the desire of the head of the department to use all the power […] to carry out a plan of action in any particular situation”, Davidson told DL News.

Recall that on June 5, the SEC sued Binance and its CEO Changpeng Zhao. The regulator brought 13 charges, including the sale of unregistered securities.

Reports later emerged that the Commission’s claims were similar to those brought by the agency against the failed crypto exchange FTX and its subsidiary Alameda Research.

On June 6, the SEC filed a motion to freeze digital assets held by Binance.US. The head of Binance, Changpeng Zhao, clarified that such actions, if approved by the court, are applicable only to the US division, and not to the international exchange.

On June 12, Binance.US disputed the Commission’s emergency petition, calling it “draconian and overly burdensome.”

The next day, the court ordered the SEC and the American “daughter” of the platform to find a compromise without freezing assets.

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