U.S. Lawmakers Push to Remove Gary Gensler as SEC Chair Through the SEC Stabilization Act

U.S. Representatives Warren Davidson and Tom Emmer have introduced a new bill to remove Gary Gensler as Chair of the U.S. Securities and Exchange Commission (SEC) and restructure the regulatory organization. The bill, named the SEC Stabilization Act, recommends the removal of the Chair position and an appointment of an executive director for day-to-day operations. A sixth SEC commissioner will be added, a structure similar to the Federal Elections Commission (FEC) implemented, and a redistribution of power proposed. Davidson says this is to stop the ongoing abuse of power and protection, and ensure that the SEC’s priorities align with the market for investors’ benefit. Emmer says the bill’s common-sense approach makes changes to prioritise investors over the Chair’s reckless whims.

Pushback against Gensler and enforcement actions

This pushback against Gensler and the SEC was sparked by recent enforcement actions targeting some of the largest players in the U.S. crypto industry. Senators and lawmakers say enforcement through regulation is not enough and requires a clear regulatory framework for exchanges to comply with and promote innovation. The lack of regulatory guidance pushes its industry for more welcoming jurisdictions. Davidson previously has voiced his intent to introduce the SEC Stabilization Act this year after a tweet by Coinbase legal chief Paul Grewal saying the SEC is overreaching its enforcement actions and regulations.