US lawmakers call for Gensler to be fired and SEC reorganized

Bill introduced to remove SEC chairman

U.S. Representative Warren Davidson said at a hearing on the oversight of the Securities and Exchange Commission (SEC) on Wednesday that he would introduce a bill to remove Chairman Gary Gensler and reorganize the SEC.

I’m calling to restructure the @SECGov and the removal of chairs @GaryGensler.

Watch my closing remarks from today’s hearing where I lay out the abuse of power and failure to protect investors that has occurred. pic.twitter.com/SNXio9Zbej

— Warren Davidson (@Warren Davidson) April 18, 2023

At a hearing held by the House Financial Services Committee, Rep. Davidson told Gensler, who was subpoenaed as a witness, “Your track record of failing to protect investors and abusing power shows that the SEC needs to be reorganized. I made it clear,” he said. Examples of abuse of power are listed below.

• Submit an average of 2 or more regulatory cases per month
• Setting an inappropriately short comment period
• Imposing impracticable and illegal ESG disclosure regulations on the market
• ‘Hotel California’ Rule Addresses Crypto Industry: ‘You Can Check In Anytime, But Never Leave’
• Endless discovery process required for covered entities with no resolution or clarity
• Impracticable Proposal for Overhaul of Stock Market Structure
• Proposed Custody Rules Effectively Ban Virtual Currencies

“Disgruntled people are leaving the office, and disgruntled businesses and capital are leaving the country,” he said, citing the high turnover rate of SEC staff. Revealed the contents of the bill to dismiss the chairman.

Davidson argued that Americans want democratic access to capital and market participation for individual investors. “You shouldn’t shut retail investors out of the market and insist that ‘it’s for you,'” Gensler said.

connection:“Cryptocurrency companies don’t offer securities,” US lawmaker writes to SEC chairman

Exchange definition change

The SEC met today on a proposal to revise the definition of “exchange.” This proposal, which was submitted in January 2022, has been strongly opposed by the cryptocurrency industry, saying that the scope of business to which the Securities Act is applied will be expanded and decentralized finance (DeFi) may also be subject to it. I received it.

The SEC decided to reopen the proposal on the same day in a 3-2 vote. Gensler said at the meeting that the amendments could benefit investors and the market by subjecting certain brokers to additional regulatory scrutiny and “modernizing” the rules that define exchanges. said he could.

SEC Commissioner Hester Pearce, known for his cryptocurrency advocacy, released a statement titled “Interpretation Killing Hope for Innovation.” Of this decision, he said, “rather than embracing the promise of new technology, he proposes embracing stagnation, enforcing centralization, encouraging deportation, and welcoming the disappearance of new technology.” criticized.

Pierce also said that rather than interacting with entrepreneurs and helping them comply with regulations, the SEC betrayed the trust of companies that trusted and consulted with the SEC and threatened the “rulemaking process of notice and comment.” He accused me of using it like that.

While Gensler argues that almost all cryptocurrencies are securities, he does not provide clear regulatory guidelines for Ethereum, the second-largest cryptocurrency by market capitalization, by avoiding specifying whether it is a security or a commodity. His frustration with his approach extends beyond the cryptocurrency industry to the political world, as evidenced by his recent exchanges with the House Financial Services Committee.

connection:Coinbase CEO says he’s ready to fight the SEC in court

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