US Congressman Warren Davidson has introduced a piece of legislation titled the "SEC Stabilization Act" to the House of Representatives.
The bill is seemingly designed to curb the power of Gary Gensler, the current Chair of the Securities and Exchange Commission (SEC), and proposes his removal from office.
Davidson highlighted concerns over what he sees as Gensler's tyrannical approach towards the management of the U.S. capital markets. He stated that the legislation seeks to mitigate perceived abuses of power, protect market interests, and prompt essential reforms. One such reform proposed by Davidson is to terminate Gensler's role as SEC Chair.
The bill was initially mentioned earlier this year by Davidson in response to a tweet from Coinbase's legal chief, Paul Grewal. Congressman Tom Emmer, who has also criticized Gensler's leadership, co-authored the proposed legislation. Emmer stated the bill would help refocus the SEC's priorities towards safeguarding the investors they are responsible for protecting, instead of being dictated by the capricious behavior of its Chair.
SEC Stabilization Act: Potential Shift Towards Pro-Crypto Stance
A report from Fox News suggests the bill if passed, would effectuate a significant change in the SEC's structure. Gensler would be removed, and the powers currently held by the Chair would be dispersed among the commissioners. In addition, a sixth commissioner would be appointed to the agency, ensuring no single party dominates the commission. The bill also proposes the creation of a new executive director role.
The legislation does not explicitly mention cryptocurrencies, but both Davidson and Emmer are well-known advocates of digital assets. Emmer has publicly labeled Gensler a "bad faith regulator," while Davidson serves as vice-chair of the House Financial Services Committee's new Subcommittee on Digital Assets, Financial Technology, and Inclusion. Given their criticism of Gensler's stewardship of the SEC, the bill can potentially be seen as a vehicle for these lawmakers to push for more pro-crypto regulations. The SEC, when contacted by Cointelegraph for a response, declined to comment on the proposed legislation.
Also read- Robinhood's Unique Stance: Embracing SEC Rules Amidst Industry Resistance
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