The SEC Chair Gary Gensler has suggested that all the proof-of-stake crypto tokens may be considered securities. 

US Congressman Introduce Bill to Fire SEC Chair

  • US Congressman Warren Davidson claims that the bill seeks to address Gary Gensler’s abuse of power.
  • US lawmakers have made several attempts to design a comprehensive guideline for the crypto sector but have so far failed in their attempts.

The US Securities and Exchange Commission (SEC) Chair, Gary Gensler, could be on his way out of the agency if a new bill pushed by US Congressman Warren Davidson gains steam. Davidson introduced the “SEC Stabilization Act” into the House of Representatives on Monday, June 12.

The bill focuses on a huge restructuring of the SEC and firing Gensler from his controversial role. The bill, according to Davidson, seeks to address the “long series of abuses that have been permitted under the current SEC structure.”

Davidson said,

“U.S. capital markets must be protected from a tyrannical chairman, including the current one. 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.”

House Majority Whip Tom Emmer said in a release that “American investors and industry deserve clear and consistent oversight, not political gamesmanship.” He added that “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.”

Aside from removing Gensler from his role, the bill seeks to reorganize the SEC and distribute power from the chair to other commissioners, create room for a sixth commissioner, and establish the position of an executive director to manage day-to-day operations.

The bill allows commissioners to maintain their rulemaking, investigation, and enforcement powers and to serve their regular six-year terms. The SEC Stabilization Act would also establish a framework similar to that of the Federal Elections Commission (FEC) and restrict political parties from holding more than three seats on the commission.

The SEC’s Fight Against Crypto

The prices of Bitcoin and Ethereum have fluctuated significantly over the past few days as unexpected regulatory action rattles the crypto industry. Last week, the SEC filed a lawsuit against Binance and Coinbase, which resulted in the price of Bitcoin plummeting to levels last seen in March.

Some within the crypto space believe there is a subtle attack against the crypto industry from some of the regulatory powers in the US. Tech investor David Sacks claimed that Gensler and U.S. senator Elizabeth Warren have an “alliance” to bring down cryptocurrency in the U.S.

Sacks, while speaking at the All-In Podcast, explained that “the scuttlebutt is that [Gensler] has an alliance with Elizabeth Warren, and the rumor is that she will make him Treasury Secretary if he basically destroys crypto in the U.S.”

According to Sacks,

What Gensler and the SEC are saying is that it is not legal to operate a crypto exchange in the United States. I believe that Gensler is far exceeding his authority in stating something like that. It is not up to the chairman of the SEC to say that Americans should not be holding crypto.”

Last week, some lawmakers introduced a bill to Congress that recommended a new framework designed to provide regulatory clarity for crypto service providers in the country. The bill suggests that the SEC would oversee cryptocurrencies offered as part of an investment contract. It also recommends that the Commodity Futures Trading Commission (CFTC) supervise digital assets that qualify as commodities.

Lawrence Woriji
Lawrence Woriji Verified Author

I have covered some exciting stories in my career as a journalist and find blockchain-related stories very intriguing. I believe Web3 will change the world and want everyone to be a part of it.

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