- US lawmaker Warran Davidson has filed the SEC Stabilization Act which aims to restructure the SEC and fire Gary Gensler
- Under Davidson’s structure, an executive body would replace the all-powerful chair
- Davidson has support from several politicians
US Representative Warren Davidson yesterday formally called for the removal of Securities and Exchange Commission (SEC) Chair Gary Gensler. The move, which was first suggested during last month’s House Financial Services Committee hearing, came in the form of the “SEC Stabilization Act” and cites Gensler’s alleged abuse of power and failure to protect investors as the reasons why the SEC should be restructured and the position of Chair removed entirely. The Act will have at least one vote in the form of Representative Tom Emmer, but others in the crypto space have warned that it amounts to not much more than posturing.
“Long Series of Abuses”
The suggestion of a restructuring of the SEC came in last month’s feisty House Financial Services Committee hearing, where Gensler received his fiercest rebuke to date over his policy of regulation by enforcement. During his five minutes last month, Davidson attacked Gensler’s record:
Chairman Gensler, your record of failures to protect investors and abuses of power make it clear make it clear that we need to restructure the Securities and Exchange Commission.
Davidson wants to install an Executive Director to replace Gensler who reports to the board instead of an all-powerful chair, adding that his bill “resonates across the political spectrum” and into the public sphere.
Davidson added to these criticisms in the formal tabling of the Act:
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, where all authority resides. Former Chairs of the SEC will be considered ineligible.
Davidson then offered a laundry list of criticisms to explain his rationale:
- Abusing rule proposals by averaging more than two new SEC rules per month
- Inappropriately short public comment periods
- Unworkable, and unlawful, ESG disclosure mandates
- Hotel California rules for crypto:
- The ability to check in (with the SEC) any time, but never have the ability to leave (with approval).
- Endless discovery with no resolution and no clarity for captives or the market
- An unworkable proposal for overhauling equity market structure
- A de facto ban on crypto through the proposed custody rule
- Failing to work with Congress
Not Everyone Hopeful
Despite many in the crypto space lauding the move, others were more skeptical over its chances of success:
Political theatrics unfortunately.
I wouldn’t hold your breath on this, though I respect the effort nonetheless https://t.co/tpETztVb43
— Psycho (@AltcoinPsycho) June 12, 2023
Regardless of its chances of success, the fact that such an act has even been tabled shows the disdain with which many hold Gary Gensler right now, a momentum which will only build as he further squeezes the crypto space.
