Warren Davidson, the Republican congressman who first introduced the legislation in mid-April, has filed the SEC Stabilization Act to remove Gary Gensler, the current chair of the U.S. Securities and Exchange Commission (SEC). Davidson insists the act aims to safeguard U.S. capital markets “from a tyrannical chairman.”
Legislation Filed to Remove SEC Chair Gensler in Effort to Safeguard U.S. Capital Markets
Several Republican lawmakers have openly criticized SEC chairman Gary Gensler for his performance in leading the federal securities regulatory division. Among them is congressman Warren Davidson (R-OH), who recently announced his intention to introduce legislation to remove Gensler from his position. Less than two months later, Davidson filed the SEC Stabilization Act and shared the news on Twitter on June 12th.
“U.S. capital markets must be protected from a tyrannical chairman, including the current one,” Davidson said in a statement. “That’s why I’m introducing legislation to fix the ongoing abuse of power and ensure 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 chair of the SEC.”
Davidson also announced that U.S. congressman Tom Emmer, a Republican from Minnesota, has joined him in supporting the bill. “American investors and industry deserve clear and consistent oversight, not political gamesmanship,” Emmer said. “The SEC Stabilization Act will make common-sense changes to ensure that the SEC’s priorities are with the investors they are charged to protect and not the whims of its reckless chair.”
Criticism of Gensler’s job performance extends beyond Republican politicians, with Democratic presidential hopeful Robert F. Kennedy Jr. also expressing his dissatisfaction with the U.S. securities regulator. Kennedy stated last month that the “SEC’s function now is not to protect the American people, but it’s to protect the banks.” The presidential candidate also advocated for a leader at the SEC who is supportive of cryptocurrencies.
Davidson’s proposal aims to establish a new structure where the responsibility of producing current policy would shift from the SEC chair to the six SEC commissioners, who would be involved in rulemaking, enforcement, and investigations. Patrick McHenry, the chair of the United States House Financial Services Committee, has also voiced criticism of Gensler in recent times.
During an oversight hearing on April 18, McHenry posed a question to Gensler regarding the classification of ethereum (ETH) as a security. At the time, Gensler refrained from providing a direct answer to whether he believed ETH to be a security.
What are your thoughts on the proposed SEC Stabilization Act and the ongoing debate surrounding the performance of SEC Chair Gary Gensler? Share your thoughts and opinions about this subject in the comments section below.