GOP lawmakers call for removal of Gary Gensler with SEC Stabilization Act

It appears that proceedings may soon become even more complex within the US Securities and Exchange Commission (SEC) crypto crackdown. As of today, June 12, House Republicans have begun pushing for a significant restructuring of the regulatory body.

Last week, the SEC filed civil lawsuits against Binance and Coinbase, citing investor protection failures and mismanagement of customer funds. In the midst of this landscape, Congressman Warren Davidson of Ohio and House Majority Whip Tom Emmer of Minnesota introduced the “SEC Stabilization Act,” which calls for the removal of the current SEC chairman, Gary Gensler.

SEC Stabilization Act

The two GOP lawmakers accuse Gensler of a series of abuses under the existing SEC structure and are calling for significant changes to protect the U.S. capital markets. Davidson explained the intent behind the legislation via Twitter, saying, “It’s time for real reform and to fire Gary Gensler as SEC Chairman. American capital markets must be protected from a tyrannical chairman, including the current one.”

The proposed legislation would redistribute power from the chairman to other commissioners, create an executive director position to manage day-to-day operations and add a sixth commissioner to the regulatory body. Davidson and Emmer say they designed these changes to offer clear, consistent oversight to investors and the industry, distancing themselves from what they call “political gamesmanship.”

“American investors and industry deserve clear and consistent oversight, not political gamesmanship,” Emmer stated via Davidson’s Twitter thread. “The SEC Stabilization Act will make healthy changes to ensure that the SEC’s priorities are with the investors it is charged with protecting and not the whims of its reckless chairman.”

The bill also imposes limits on political control of the SEC, prohibiting a single political party from controlling more than three seats on the commission. Also, commissioners would retain regulatory, investigative and enforcement authority and would serve staggered six-year terms, much like the Federal Election Commission (FEC).

Although the bill does not explicitly mention cryptocurrency, both Davidson and Emmer have been known to be pro-crypto and NFTs. Davidson serves as deputy chair of the House Financial Services Committee’s new subcommittee on digital assets, financial technology and inclusion, while Emmer has previously criticized Gensler’s leadership of the SEC.

This proposed legislation has come at a time when Gensler has shown an increasingly dismissive stance on cryptocurrencies. This stance, combined with the SEC’s increased scrutiny, has caused friction within the regulator and the broader market.

Whether the SEC Stabilization Act will receive enough support to pass into law is still uncertain. However, the proposed bill highlights a new rift between crypto supporters and traditional regulators.

As the crypto industry continues to evolve, the question of how best to regulate these digital assets will remain a contentious and critical issue in the financial world. The SEC Stabilization Act marks a significant effort to address these concerns and provides a new direction for the SEC amid the growing importance of digital assets.

Editor’s note: This article was written by an nft employee in collaboration with OpenAI’s GPT-4.