Will Gary Gensler be removed from his post as SEC chief? Resistance in US politics is now taking on concrete forms. It is not yet clear whether the notorious crypto opponent will actually be excluded.
Gary Gensler removed from SEC? Resistance takes shape
Gary Gensler has been Chairman of the US Securities and Exchange Commission since April 2021. In the meantime, there is growing resistance against the democratic politician. First lawmakers now want to remove Gensler from his post within the SEC.
The announcements were made public in April. Until yesterday, the Republican members of the US House of Representatives were working on an ordinance that intends to fire the current SEC chief.
The background to the conflict is the political course that the SEC is taking under Gensler’s leadership. Gensler is considered to be extremely anti-crypto. Since February of this year, the politician has been taking strict measures with the authority, which have recently escalated further and resulted in drastic lawsuits against Binance and Coinbase.
As the conflict develops, the rejection of his opponents increases. Several Republican MPs have already attacked Gensler for his policies. In the US Congress Finance Committee, he met with a lot of criticism.
Many Republicans accuse Gensler of abuse of power. The SEC is dealing with areas that do not belong to its competence, so the allegation.
Resistance takes shape
In the meantime, resistance among US politicians is taking on concrete forms. Republican Warren Davidson introduced a new law yesterday. The SEC Stabilization Act was a collaboration between Davidson and party colleague Tom Emmer.
Both deputies are considered to be very crypto-friendly. They think the law is urgently needed. On the one hand, it should lead to the dismissal of Gensler, who, according to the two Republicans, is not suitable for his current position.
In addition, the SEC is to be restructured in general . Instead of a head of agency who sets the course for supervision, six commissioners are supposed to simply enforce applicable laws. The head of the SEC would then only be responsible for supervising the work.
The commissioners are chosen by the ruling political parties, but no party should be allowed to win a majority. Each party can therefore nominate a maximum of three commissioners – with the aim of pursuing a neutral policy.
“Today I introduced the SEC Stabilization Act to reorganize the SEC and fire Gary Gensler. US capital markets must be protected from a tyrannical leader, including the current one. It’s time for real reform and for the removal of Gary Gensler from the chair of the SEC.” Writes Davidson on Twitter.
🚨 NEWS – Today I filed the SEC Stabilization Act to restructure the @SECGov and #FireGaryGensler.
U.S. capital markets must be protected from a tyrannical Chairman, including the current one. It’s time for real reform and to fire @GaryGensler as Chair of the SEC. Statement ⬇️ pic.twitter.com/0VUHxUAhtB
— Warren Davidson 🇺🇸 (@WarrenDavidson) June 12, 2023
The new law is intended to pave the way for future innovations and at the same time lead to better consumer protection. In addition, one wants to depoliticize the regulatory authority.
“US investors and industry deserve clear and consistent oversight, not political games. The SEC Stabilization Act will make sensible changes to ensure the SEC’s priorities are with the investors it has to protect and not the whims of its ruthless chairman.” Explains Emmer.
Details of the law are not yet known. In the coming hours or days, the proposed legal text should reach the public. In April, Davidson mentioned that the SEC chairman should present regular financial statements before Parliament. The stricter supervision by Parliament is intended to prevent any abuse of power.
Davidson and Emmer are hoping for support from the Democratic competition for the law. Its goals are of interest to all parties.
