US lawmakers introduce bill to reorganize SEC and fire Gensler

To true investor protection

US Republican Rep. Warren Davidson announced on the 12th that she has introduced the SEC Stabilization Act, a bill to reorganize the US Securities and Exchange Commission (SEC).

The bill includes firing SEC Chairman Gensler. Davidson, a known crypto advocate, said the capital markets must be protected from an oppressive chairman and now is the time for real reform.

NEWS – Today I filed the SEC Stabilization Act to restructure the @SECGov and #FireGaryGensler.

US capital markets must be protected from a tyrannical Chairman, including the current one. It’s time for real reform and to fire @GaryGensler as Chair of the SEC. Statement pic.twitter.com/0VUHxUAhtB

— Warren Davidson (@Warren Davidson) June 12, 2023

Last week, the SEC filed lawsuits against major cryptocurrency exchanges Binance and Coinbase, which has had a major impact on the cryptocurrency market. The SEC had been accelerating regulatory enforcement actions due to the impact of the FTX bankruptcy and other factors, and Mr. Davidson had indicated his intention to submit the bill in April.

connection: U.S. lawmakers call for removal of Gensler and reorganization of SEC

According to Davidson’s tweet, the bill proposes adding a sixth commissioner to the current five-member commissioner. It will also allow up to three Republicans and three Democrats to be elected, and will replace the chairman with an executive director at the top. It also stipulates the redistribution of power to the Commissioner, according to Fox News.

The #SECStabilizationAct explained

Fire 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

— Warren Davidson (@Warren Davidson) June 12, 2023

Regarding this bill, Rep. Tom Emmer, who belongs to the same Republican Party and is known as a cryptocurrency advocate, announced on the 12th that he cooperated in submitting the bill. Emmer commented:

From now on, the approval of the Democratic Party will be necessary for the legislation to actually be enacted.

connection: ‘Virtual currency regulation was a failure’ US Congressman, SEC Chairman Gensler requesting congressional testimony

Compliance with virtual currency regulations

The bill is designed to reorganize the SEC and is not crypto-specific. Neither of the above-mentioned lawmakers specifically mentioned cryptocurrencies in their announcement.

Emer, on the other hand, cites a video of Davidson speaking at the public hearing when criticizing Gensler. In the video, Davidson mentions cryptocurrencies.

“Your track record of failure to protect investors and abuse of power makes it clear that the SEC needs to be reorganized,” Davidson told Gensler at a hearing in April. 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

connection: US Democratic lawmakers seek to issue rules to prevent tax avoidance of virtual currency transactions

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