US Congressman takes action to remove SEC chairman Gary Gensler with new legislation

Congressman Warren Davidson has introduced a bill to revamp the Securities and Exchange Commission (SEC) and terminate chairman Gary Gensler, labels Gensler as “Authoritarian” in market protection call. The legislation follows recent enforcement action taken by SEC recently, which prompted the Congressman to file legislation to restructure the commission,which targeted Coinbase and Binance for Violating US Securities Laws.

Congressman introduces SEC Stabilisation Act

The Congressman countered SEC's crackdown on prominent cryptocurrency exchanges, Coinbase and Binance, following alleged securities violations, affecting the digital asset Industry. Specifically, Warren Davidson took aim at SEC chairman Gary Gensler with legislation seeking to terminate and restructure the regulatory agency to change its current organisation.

🚨 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

Conclusively, Davidson wrote, “It’s time for real reform and to fire Gary Gensler as Chairman of the SEC.” On the other hand, the call for a change in leadership has been consistent.

Specifically because of the concern regarding how the SEC’s actions could affect the industry. Subsequently, this is pushing digital asset development away from the US.

Was this on the cards?

Earlier this year, Davidson stated his plan to propose the bill in response to a tweet from Paul Grewal, Coinbase's legal chief representative.

"The regulatory gap." Proof from the Hinman emails of what we've been saying to the Third Circuit, to Congress and to the SEC itself: that the securities laws are incomplete when it comes digital assets, that securities law aren’t meant to rule over all digital assets, and that… pic.twitter.com/IgPJvEyqq2

— paulgrewal.eth (@iampaulgrewal) June 13, 2023

Tom Emmer is also involved in drafting the bill and emphasised that it aims to prioritise protecting investors rather than following the whims of the SEC Chairman. According to Fox News, the bill aims to remove Gensler from his position at the SEC and redistribute power among the SEC chair and commissioners.

It also proposes adding a sixth commissioner, preventing any single party from having a majority, and establishing an executive director role. While the lawmakers didn't mention cryptocurrency directly, both Davidson and Emmer are known to support cryptocurrencies and have criticised Gensler's leadership at the SEC.

Emmer has referred to Gensler as an ‘untrustworthy’ regulator, and Davidson serves as the vice chairman of the House Financial Services Committee's new Subcommittee on Digital Assets, Financial Technology, and Inclusion.