Republican lawmakers are taking a strong stance against SEC Chair Gary Gensler, calling for his removal due to alleged bias and damage to the digital asset industry. U.S. Congressman Warren Davidson, supported by House Majority Whip Tom Emmer, has advocated for Gensler’s firing, citing corruption and abuses of power.
This move comes amid escalating tensions between the SEC and the digital asset sector throughout 2023. Davidson has voiced concerns over Gensler’s enforcement-first regulatory approach, arguing that it has strained the SEC’s relationship with the industry. In response, Davidson introduced the SEC Stabilization Act aimed at restructuring the SEC and removing Gensler from his position.
The Act proposes adding a sixth commissioner and an Executive Director to oversee day-to-day operations, while rulemaking, enforcement, and investigation powers remain with the commissioners. The aim is to prevent a single political party from holding more than three commissioner seats, ensuring the protection of U.S. capital markets from potential political agendas.
Davidson emphasized the need for reform, stating that the SEC must be protected from a tyrannical chairman, including the current one. Emmer echoed these sentiments, emphasizing the importance of clear and consistent oversight in the interest of American investors and the industry.
Supporters of Gensler’s removal have taken to social media, highlighting the need to end the accredited investor rule, which is seen as protecting the interests of a privileged class. They also accuse Gensler’s SEC of favoring Wall Street over Main Street and endorse Davidson’s bill as a means to hold the SEC accountable.
These developments and the introduction of the SEC Stabilization Act represent a critical moment in the ongoing discussions surrounding regulatory approaches and accountability within the U.S. financial regulatory framework.