Rep. Warren Davidson (R-OH) stated on June 12 that he will be introducing the “SEC Stabilization Act” in the House of Representatives. The termination of Gary Gensler as chairman of the Securities and Exchange Commission (SEC) is a key element of the measure.
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.
Rep. Warren Davidson said in a statement
The #SECStabilizationAct explained ⤵️
— Warren Davidson 🇺🇸 (@WarrenDavidson) June 12, 2023
❌ Fires Chair @GaryGensler
✅ All rulemaking, enforcement, & investigations conducted by 6 commissioners
➕ Creates ED Role for day-to-day operations
Thank you, @GOPMajorityWhip for helping lead this legislation. pic.twitter.com/QFEHePJh1h
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. Thank you, Representative Davidson, for leading this important effort to restore sanity at the SEC.
Congressman Tom Emmer
The complaints raised by each representative are similar to those voiced by the industry. Last week, Coinbase, a cryptocurrency exchange that was sued by the SEC on Tuesday for breaches of securities law, warned Decrypt that the SEC is taking a “enforcement-only approach” without defined laws regulating digital assets. Binance US said on Thursday that the SEC is employing scare tactics in order to further “an ideological campaign against the American digital asset industry.”
Hester Peirce, a commissioner at the SEC, has been vocal in her criticism of Gensler for trying to regulate cryptocurrencies in accordance with the commission’s preexisting framework for the financial sector.
In addition to dismissing Gensler, the legislation proposed by Davidson and Emmer would increase the power of commissioners like Peirce by centralizing “rulemaking, enforcement, and investigation authority” among six commissioners instead of the current five. Commissioners would serve staggered six-year terms, and no more than three may come from the same political party. An “Executive Director” would oversee day-to-day activities of the agency.
