US Representative Warren Davidson Proposes Legislation to Remove SEC Chairman Amidst Criticism for Cryptocurrency Crackdown
US Representative Warren Davidson has proposed legislation to remove SEC Chairman Gary Gensler, citing a long series of abuses, including a crackdown on cryptocurrencies. The announcement came in response to a tweet from Coinbase Chief Legal Officer Paul Grewal. Davidson’s proposed legislation would replace the SEC chairman with an executive director that reports to the board, with former chairs of the SEC being ineligible.
The move comes after Gensler faced severe criticism for the SEC’s crackdown on cryptocurrencies, with House Majority Whip Tom Emmer accusing Gensler of acting in bad faith as a regulator, limiting the growth of the cryptocurrency industry in the United States. Emmer alleged that Gensler has been naively showering the crypto community with enforcement actions while disregarding the genuinely troublesome people in the area.
The SEC’s proposed rule revisions, announced in 2022, aim to subject some brokers to more regulatory scrutiny and modernize criteria that define an exchange, plugging a regulatory vacuum left by platforms that provide securities trading but do not register as exchanges or brokerages. The amended plan includes wording relating to digital assets, many of which the regulator claims belong within its jurisdiction.
The SEC has been one of the agencies that are considered the enemies of the crypto industry. The standout battle between the SEC and Ripple has been going on for the past two years, with the event coming to an end with a summary judgment next month. If Ripple wins the case, it will be a huge blow to the entire industry.
In conclusion, Representative Warren Davidson’s proposed legislation to remove SEC Chairman Gary Gensler comes amidst severe criticism for the SEC’s crackdown on cryptocurrencies. The move highlights the growing divide between regulators and the cryptocurrency industry, with the SEC seen as one of the industry’s most significant enemies. The outcome of the SEC’s battle with Ripple will have significant implications for the entire industry.
