Key Points:
- House Republicans Warren Davidson and Tom Emmer have formally introduced legislation to reform the Securities and Exchange Commission and replace its chairman, Gary Gensler.
- When the SEC went after two big cryptocurrency exchanges last week, it rattled the entire digital asset market.
- The newly introduced legislation will reorganize the regulatory agency in order to replace its present structure.
A pair of House Republicans presented legislation to oust the chairman of the Securities and Exchange Commission (SEC), Fox News first reported the news.
The SEC Stability Act, proposed by Rep. Warren Davidson, R-Ohio, and House Majority Whip Tom Emmer, R-Minn., would reform the SEC and remove Chairman Gary Gensler from his position.
The legislation proposed by Davidson and Emmer would remove Gary Gensler from his position as SEC chairman and restructure the commission to redistribute power from the chair to other commissioners, add a sixth commissioner to the body, and create an executive director position to oversee day-to-day operations.
“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,” Davidson said.
Republicans object to Gensler’s “long series of abuses that have been permitted under the current SEC structure.” Recently, prominent crypto events also stemmed from Gary Gensler with the attack on 2 major US exchanges, Binance and Coinbase.
The SEC’s legal case against Binance is centered on the claim that the exchange engaged in unregistered securities transactions, therefore breaching US securities laws. Binance is one of the world’s major cryptocurrency exchanges, and it plays a key role in the market, thus this lawsuit is a source of considerable anxiety for many investors.
Coinbase, on the other hand, has been accused of deceiving investors and breaking federal securities laws in connection with Coinbase Lend, their lending product. The SEC’s main concern is the product’s nature and whether it should be categorized as a security, necessitating greater restrictions and control.
The SEC’s recent cases against Binance and Coinbase herald the start of a new age of regulatory scrutiny for digital assets.
Commissioners would continue to retain rulemaking, investigative, and enforcement jurisdiction, as well as staggered six-year terms.
Moreover, the SEC Stabilization Act would prohibit any political party from having more than three members on the commission and would institute a structure similar to that of the Federal Elections Commission (FEC).
Rep. Byron Donalds, R-Fla., recently questioned Gensler about the notorious Steele dossier paid for by former Secretary of State Hillary Clinton’s 2016 presidential campaign at a House Appropriations Subcommittee hearing. The SEC chairman served as Clinton’s top finance officer throughout her disastrous presidential campaign.
As Coincu reported, Davidson said that he would submit legislation to oust SEC Chairman Gary Gensler. He stated:
“To correct a long series of abuses, I am introducing legislation that removes the Chairman of the Securities and Exchange Commission and replaces the role with an Executive Director that reports to the Board. Former Chairs of the SEC are ineligible.”
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Harold
Coincu News
Source: https://news.coincu.com/194473-house-republicans-to-fire-sec-chair/