Republicans Warren Davidson and Tom Emmer, who nominated the SEC Stabilization Act in the U.S. House of Representatives, criticized current SEC Chairman Gary Gensler for his actions against cryptocurrency exchanges and companies. Last week, the financial regulator sued two major cryptocurrency exchanges, Binance and Coinbase.
Under the updated bill, the SEC must remove the chairman position and appoint an executive director to oversee day-to-day operations. It is also proposed that a sixth commissioner be added to the office in order to redistribute the powers of the chairman among all the commissioners. The bill is designed to prevent more than three agency employees from belonging to any one political party.
“America’s capital markets should be protected from any tyrant presidents, including the current. This bill would eradicate the abuse of power and protect the crypto market for years to come. It’s time for real reform, and to do that we need to fire Gary Gensler,” Davidson said.
Minnesota Republican Tom Emmer supported the bill. According to him, U.S. investors deserve clear and consistent regulation, not political gamesmanship. The SEC Stabilization Act would make changes to the structure of the agency, and they would be based on common sense. As Emmer put it, it would provide assurance that the SEC’s priorities are about protecting investors, not the whims of its “reckless chairman.”
Last week, the SEC was criticized by Sen. Cynthia Lummis. She blamed the agency for failing to provide adequate guidance on what criteria cryptocurrencies are considered securities.