Congressman Warren Davis commented that Gary Gensler of the SEC “must be protected from a tyrannical Chairman, including the current one.”
On June 12, American Congressman Warren Davidson introduced the “SEC Stabilization Act” in the House of Representatives, which contains a clause that would have Gary Gensler, the current chair of the Securities and Exchange Commission (SEC), removed from his position. Representative Tom Emmer is a coauthor of the legislation, and Davidson had earlier this year indicated his desire to propose it.
Davidson said in a statement:
“U.S. capital markets must be protected from a 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. It’s time for real reform and to fire Gary Gensler as Chair of the SEC.”
The bill seeks to alter the composition and delegation of authority within the SEC. It suggests removing Gensler from office and dividing up authority among the commissioners and SEC chair. The measure also recommends creating an executive director post, prohibiting any party from controlling a majority on the commission, and adding a sixth commissioner to the organization.
Davidson and Emmer are well known for their support of cryptocurrencies and have criticized Gensler’s leadership at the SEC, even if they did not name cryptocurrencies specifically in their speeches. Gensler has been referred to by Emmer as a “bad faith regulator,” while Davidson is the vice head of the House Financial Services Committee’s newly established Subcommittee on Digital Assets, Financial Technology, and Inclusion.
The SEC Stabilization Act intends to make sure that investor safety is the SEC’s top priority rather than the chair’s personal preferences. The consequences of the measure for the cryptocurrency business and the general operation of the SEC will become more apparent as it moves through the legislative process.