A pro crypto member of congress, Rep Tom Emmer has fired back at the Treasury department for requesting more power over the crypto industry.
The Republican lawmaker who sits on the House Financial Services Committee, criticized the U.S. Treasury Department for having a savior-like complex when asked about its crypto recommendations on Thursday during the Blockchain Association Policy Summit.
“I’ve always had this attitude — beware of the self proclaimed savior that rides in on a white horse and tells you I’m here to protect you,” Emmer said.
Emmer’s comment is coming in the wake of the Treasury’s request to the house for more control over the cryptocurrency industry in the U.S. Among concerns raised by the department was the issue of stablecoin issuers outside of the U.S using the USD as a peg.
The department through the Deputy Secretary Wally Adeyemo said the use of stablecoins for terrorism sponsoring and other illegal use cases was among its major concerns and there’s need to ensure that terrorists are blocked from using such stablecoins.
“I am increasingly concerned about things like dollar-based stablecoins that aren’t based here in the United States, but give people the privilege and the ability to use the dollar outside of our jurisdiction,” Adeyemo said on Wednesday during a fireside chat at the Blockchain Association Policy Summit.
Rep. Emmer Fires Back
The issue of stablecoins was just one of the issues raised by Adeyemo, most of which was wrapped around terrorism financing. However Rep. Emmer said the Treasury had no right to raise such concerns when it failed to respond to a letter from lawmakers asking them how crypto was used in Hamas financing.
Following the Hamas incident, many lawmakers expressed concern on the use of crypto for terrorism financing. However, it remains unclear how crypto played a role in financing the attack.
“Tell us what the issue is first,” Emmer said on Thursday. “They want to swallow this all up into the surveillance security state that they’ve created. We just can’t let it happen. This is Congress’s purview not his,” Emmer continued.
Meanwhile, another Republican lawmaker, Sen. Cynthia Lummis said she was more interested in the issue of mixers and tumblers with Adeyemo also raised, saying it could be worth discussing with the department.
“I’m going to be looking specifically about what they recommend with regard to mixers and tumblers to see if that’s an area where we can sit down with the Treasury,” Lummis said.
Standing For Crypto
The crypto industry has faced significant resistance from regulators in the U.S. recently, the Securities and Exchange Commission (SEC) cracked down on the industry, dragging many crypto companies to court.
Republicans have since expressed their displeasure over the enforcement approach employed by the SEC in regulating the industry. Emmer and others have since advocated for a clear regulatory framework as a solution to the trouble industry faces.
With the treasury still looking for a way to mount more pressure on the industry, it is not surprising that the Republicans are resisting the proposal to the house to assign more power to the industry to control the crypto industry.
Lawmakers are still working on regulation for crypto in general and for stablecoins in particular, which may actually make it unnecessary for the Treasury to wade in.
