Rep. Davidson will introduce Bill Firing SEC’s Gensler
Crypto enthusiasts may have reason to celebrate as US Representative Warren Davidson announced plans to introduce legislation that could potentially lead to the removal of Gary Gensler, the head of the Securities and Exchange Commission.
Davidson’s move comes in response to what he perceives as Gensler’s overreaction in the digital currency space, with the SEC’s proposed redefinition of an “exchange” drawing widespread criticism.
As tensions rise between regulators and the bitcoin community, the fate of Gensler and the future of crypto regulation hang in the balance.
U.S. Rep. Warren Davidson. Image: CoinCu News
Congressman seeks to hold SEC accountable for rule changes
Gensler has come under fire for his suggestion to redefine the term “exchange”. In an April 14 meeting, Gensler defended the proposed changes, saying they could bring more brokers under regulatory scrutiny and “modernize” rules that define an exchange, which could ultimately benefit investors and markets.
Yep. To correct a wide range of abuses, I am introducing legislation that would remove the chairman of the Securities and Exchange Commission and replace the role with an executive director who reports to the board (where the authority resides). Former chairmen of the SEC are not eligible.
— Warren Davidson 🇺🇸 (@WarrenDavidson) 16 April 2023
However, Davidson took issue with Gensler’s proposal and took to Twitter to announce his intention to introduce legislation that would remove Gensler from his position. Davidson’s proposal proposes replacing Gensler’s position with a CEO who would report to the board, and explicitly stated that former SEC executives would not be eligible for the role.
SEC Chair Gary Gensler. Image: Kevin Dietsch/Getty Images
SEC Regulatory Actions Draw Criticism From Crypto Community
The SEC has actively pursued enforcement actions against several bitcoin exchanges and platforms for alleged violations of securities laws. However, some in the crypto community have accused the SEC of being overly aggressive and stifling innovation in the industry.
In response to the SEC’s actions, several prominent figures in the digital currency industry have spoken out against the agency, including SEC Commissioner Hester Peirce, whom the community has dubbed its “Crypto Mom.”
In addition to ironing this t-shirt (which publishes code from a comment letter), do I need to register as an exchange before wearing it? “It depends,” according to the SEC’s latest release: pic.twitter.com/xD7Lx2kJE6
— Hester Peirce (@HesterPeirce) 14 April 2023
Peirce: SEC refuses to adopt regulations for new technology
Peirce has voiced his concerns about the agency’s approach to regulating new technologies in the digital currency industry, charges the SEC to expand its regulatory reach without addressing real problems and to refuse to adopt existing regulations to accommodate new technologies and business models.
Peirce also criticized the SEC’s use of the “notice-and-comment rulemaking process” as a way to exert control over the industry. She argued that this process, which allows the public to comment on proposed regulations, has been used as a threat to deter companies from innovating in the space.
Crypto total market cap drops a few digits and now at $1.21 trillion on the daily chart at TradingView.com
According to the commissioner, the SEC’s lack of understanding of the crypto industry has led to ambiguity and confusion in the proposed rule changes. She suggested the agency should have issued a concept release to gather feedback and better understand the industry before proposing new rules.
Peirce’s comments reflect a growing sentiment among some in the crypto community that the SEC is stifling innovation and hindering the growth of the industry.
– Featured Image from Jeffrey Martin/Flickr.Com
