Following months of attacks against the crypto industry by the U.S. Securities and Exchange Commission (SEC), two Republican congressmen have decidedly had enough of the agency’s chairman.
“Today I filed the SEC Stabilization Act to restructure the SEC and fire Gary Gensler,” announced Warren Davidson (R-OH) on Twitter Monday. “U.S. capital markets must be protected from a tyrannical Chairman, including the current one.”
Joining Davidson in creating the legislation is Rep. Tom Emmer (R-MN) – the crypto-supportive House Majority Whip who has repeatedly blasted Gensler for his “incompetence” in governing the crypto market and driving the industry overseas.
In a press release related to the legislation on Emmer’s website, the politicians cited a “long list of abuses” Gensler has committed while in office, including a “hotel California rule” for crypto providing “no resolution and no clarity for the captives in the market.”
“American investors and industry deserve clear and consistent oversight, not political gamesmanship,” said Emmer in a statement.
Each congressman’s criticisms are reminiscent of those levied by the industry itself. Crypto exchange Coinbase—which was sued by the SEC on Tuesday for securities law violations—told Decrypt last week that the SEC is pursuing an “enforcement-only approach” without clear rules surrounding digital assets. On Thursday, Binance US accused the SEC of using fear tactics to pursue “an ideological campaign against the American digital asset industry.”
Gensler has even faced criticism within his agency from SEC Commissioner Hester Peirce (sometimes referred to as “Crypto Mom”), who has often objected in vain to the commission’s attempt to regulate crypto using existing financial industry rules.
Besides firing Gensler, Davidson, and Emmer’s legislation would give commissioners like Peirce more influence by placing “rulemaking, enforcement, and investigation authority” under six commissioners—one more than the existing five.
The #SECStabilizationAct explained ⤵️
❌ Fires Chair @GaryGensler
✅ All rulemaking, enforcement, & investigations conducted by 6 commissioners
➕ Creates ED Role for day-to-day operations
— Warren Davidson 🇺🇸 (@WarrenDavidson) June 12, 2023
Of those commissioners, no more than three could be part of the same political party, and they would be subject to staggered six-year terms. Meanwhile, an “Executive Director” would handle the agency’s daily operations.
Davidson confirmed last month that Congress had taken the White House’s proposed 30% Bitcoin mining tax off the table as part of the nation’s ongoing debt ceiling negotiations.