US Congressman Warren Davidson has officially filed legislation to restructure the US Securities and Exchange Commission (SEC) and fire its Chair, Gary Gensler. Dubbed “the SEC Stabilization Act,” the bill was co-introduced with House Majority Whip Tom Emmer.
The move comes after Davidson accused Gensler of being a “tyrannical chairman” and urged Congress to protect markets from him in a recent tweet.
“US capital markets must be protected from tyrannical Chairman, including the current one. 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,” Davidson said.
Davidson Calls for Gensler’s Removal
The legislation was filed in response to recent enforcement action taken by the SEC against cryptocurrency exchanges Coinbase and Binance. The regulator cited US securities law violations in the charges against both companies. Davidson’s bill seeks to restructure the SEC and remove Gensler from his position as Chair.
The bill is expected to face opposition from Democrats in Congress, who hold a slim majority in both the House of Representatives and the Senate. However, it remains unclear whether the legislation will gain enough support to pass. Meanwhile, the legislation is expected to put pressure on Gensler and the SEC to change their enforcement approach to cryptocurrency regulation.
American Industry Deserves “Clear and Consistent” Oversight
Davidson stated that American investors and industry deserve “clear and consistent oversight, not political gamesmanship.”
“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,” he added.
Gensler was appointed SEC Chair in April 2021 by President Joe Biden. Under his leadership, Gensler has been known to have cracked down on a long list of cryptocurrency firms while using the regulation-by-enforcement approach.
