Rep. Davidson to Introduce Legislation to Fire SEC Boss Gensler for Excess Crypto

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Securities and Exchange Commission (SEC) Chairman Gary Gensler could face unemployment after US Representative Warren Davidson said he would introduce legislation to fire the SEC boss.

In an April 15 tweet responding to Coinbases chief legal officer Paul Grewal, the crypto-friendly rep announced his intention to have Gensler removed from his role following the SEC’s latest announcement regarding the proposed redefinition of an “exchange.” .

“To correct a long series of abuses, I am introducing legislation that removes the Chairman of the Securities and Exchange Commission and replaces the role with an Executive Director who reports to the Board of Directors (where the authority resides),” tweeted Davidson.

Yeah. To correct a long series of abuses, I am introducing legislation that removes the chairman of the Securities and Exchange Commission and replaces the role with an executive director who reports to the board of directors (where the authority resides). Former SEC chairmen are not eligible. https://t.co/VBnkgt8bhM

— Warren Davidson (@WarrenDavidson) April 16, 2023

“Former SEC chairmen are not eligible,” he added.

Gensler told a meeting on April 14 that the proposed rule changes could benefit investors and markets by subjecting certain brokers to additional regulatory scrutiny as well as “modernizing” the rules that define an exchange.

Similar changes were proposed in January 2022. At the time, crypto advocacy groups suggested that it was an excess of SEC authority that could jeopardize participation in the space.

SEC Commissioner Hester Peirce, known as “Crypto Mom” ​​for her pro-crypto stances, criticized the proposed new rule amendments in an April 14 statement saying that “stagnation, centralization, expatriation and extinction are the watchwords” of the SEC’s latest decision. .

“Rather than embracing the promise of new technologies as we have done in the past, we propose here to embrace stagnation, force centralization, encourage expatriation and hail the extinction of new technologies. “, said Peirce.

Accordingly, I disagree,” she added.

In addition to ironing this t-shirt (which reposts the code of a comment letter), will I have to sign up for an exchange before wearing it? “It depends,” according to the latest SEC release: https://t.co/mARz8FzNZD pic.twitter.com/xD7Lx2kJE6

— Hester Peirce (@HesterPeirce) April 14, 2023

According to Peirce, unlike in the past when the SEC embraced new technologies, the modern regulator has expanded its reach to solve problems “that don’t exist.”

She further opined that the SEC had taken the approach of refusing to change current regulations to make room for new technologies and new ways of doing business.

“The Commission today is telling entrepreneurs who are trying to do new things in our markets to come and register,” Peirce said.

“When entrepreneurs find they cannot, the Commission rules out the possibility of making practical adjustments to our registration framework to help entrepreneurs register, and instead rewards their good faith with action coercive.”

Peirce also accused the SEC of using the “notice and comment rule-making process” as a threat.

Related: SEC to Take a Closer Look at Firms Offering or Giving Crypto Advice

According to Peirce, due to concerns about the ambiguity and scope of the proposed new rule changes and the SEC’s “limited understanding” of the space, a concept version should have been released instead.

“I wish we had done it differently,” Peirce said.

Over the past few years, the SEC has launched several high-profile actions against crypto companies such as Ripple, LBRY, and Coinbase for alleged violations.

He also took aim at staking and stablecoins, prompting some critics to claim that the SEC used enforcement action to develop the law on a case-by-case basis rather than creating clear regulations.

Magazine: Crypto Wendy on the SEC rampage, sexism, and how underdogs can win

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