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- 1 The bill, if comes into the action, could remove the existing SEC Chair, along with the position forever.
- 2 The SEC Chair, Gary Gensler has received backlash from the wider crypto community for his actions in the past.
The lawmakers in the United States are in action mode to take care of the issues with one of the prestigious financial regulators of the country. A bill has reportedly been introduced in the lower chamber of the United States Congress, and it will seek some major reforms in the SEC, including eliminating Gary Gensler from his post of the agency chair.
Rep. Warren Davidson, R-Ohio, and House Majority Whip Tom Emmer, R-Minn., introduced the bill in the US House of Representatives. The bill, dubbed SEC Stabilization Act was presented on Monday, June 12, and seeks to restructure the Securities and Exchange Commission, along with replacing the chair.
Davidson stated that the capital markets in the United States must be protected. This also includes threats from “tyrannical Chairman” like the current one at the SEC. The legislation aims to fix the “abuse of power” along with protecting the financial market’s best interests.
“It’s time for real reform and to fire Gary Gensler as Chair of the SEC.”
In the release, Emmer said the investors and industries in the United States need “clear and consistent oversight, not political gamesmanship.” Citing the act, he added that it will make “common-sense changes” and make the priorities of the SEC set towards the protection of investors rather than to charge to “the whims of its reckless Chair.”
The indications of a bill against the current SEC Chair Gary Gensler were teased in April this year when Davidson declared to bring one. With the recent turbulence in the cryptocurrency market following the financial regulator’s actions against major cryptocurrency exchanges like Coinbase, etc., the anticipated bill has now been introduced.
In a nutshell, the bill reportedly said to fire Gensler from his existing position at the SEC. The structure of the agency is proposed to change from the top, where the actual power will be taken from the chair and redistributed to the commissioners.
The bill also has a provision for adding a sixth commissioner in the regulatory body with currently five commissioners. There will be a new role of Executive Director, as Davidson also mentioned in his tweet, who will supervise the daily operations.
Both the lawmakers had their connections with the cryptocurrency in the past, even though not via direct exposure. Davidson, however, is the Vice Chair of the new Subcommittee on Digital Assets, Financial Technology and Inclusion at the House Financial Services Committee. Both have been critics of Gensler in the past and called him out on his actions and policies.
Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.
