Yesterday, Congressman Warren Davidson introduced the “SEC Stabilization Act” to restructure the SEC and remove Gary Gensler from his position. What would be new if this legislation were passed?
Warren Davidson wants to “fire Gary Gensler “
Republican Congressman Warren Davidson of Ohio’s 8th Congressional District has introduced legislation to restructure the Securities and Exchange Commission (SEC), and remove Chairman Gary Gensler from office:
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
Named the “SEC Stabilization Act”, this bill was co-signed by House Majority Whip Tom Emmer, also a Republican.
While this announcement comes at a time when the SEC has stepped up its actions against players in the cryptocurrency ecosystem, Warren Davidson had announced his attention as early as last April, when the federal authority looked into the case of decentralised exchanges (DEX).
The representative of Ohio’s 8th District didn’t mince his words about the SEC chairman:
The American financial markets must be protected from a tyrannical president, including the current one. That’s why I’m introducing legislation to address the ongoing abuse of power and provide protection that is in the best interest of the market for years to come. It’s time for real reform and to fire Gary Gensler as Chairman of the SEC. “
What would the SEC Stabilization Act do?
In order to simply understand the new features that would be introduced if the bill were to be passed, Warren Davidson shared an explanatory infographic:
The SECStabilizationAct explained ⤵️
❌ Fires Chair @GaryGensler
✅ All rulemaking, enforcement, & investigations conducted by 6 commissioners
➕ Creates ED Role for day-to-day operations
Thank you, @GOPMajorityWhip for helping lead this legislation. pic.twitter.com/QFEHePJh1h
– Warren Davidson (@WarrenDavidson) June 12, 2023
Firstly, SEC commissioners would be increased from 4 to 6, and a political party could never hold more than 3 seats.
The chairman would be replaced by an executive director, whose role would be to “oversee the day-to-day operations of the agency”. Finally, law enforcement and regulation would remain in the hands of commissioners, who would be appointed for a 6-year term.
For his part, Tom Emmer welcomed the initiative, while pointing to the political turn taken by the SEC’s recent actions:
“Investors in the U.S. and Europe are taking a hard line.
American investors and the industry deserve clear and consistent oversight, not political gamesmanship. The SEC Stabilization Act will make common-sense changes to ensure that the SEC’s priorities are the investors it is charged with protecting, not the whims of its reckless chairman. “
While it is not certain that this bill will ever succeed, it at least highlights the fact that Gary Gensler’s decisions are not unanimous in the United States and that the Web3 industry is becoming a real sovereignty issue for countries.
Yesterday, for example, Warren Davidson used the news of a16z setting up in the UK to support his argument:
You should thank @GaryGensler for driving FinTech out of America. UK is probably still a great place to invest, but Gary is definitely driving capital out of American markets. https://t.co/dTfQlDbq6N
– Warren Davidson (@WarrenDavidson) June 12, 2023
