US lawmakers introduce ‘SEC Stabilization Act’ to remove Gary Gensler

Representative Warren Davidson introduced the “SEC Stabilization Act” to the House of Representatives on June 12 in an effort to protect the integrity of the United States’ capital markets. The proposal to remove Gary Gensler, the current Chair of the Securities and Exchange Commission (SEC), lies at the heart of this legislation.

Expressing his concerns, Davidson emphasized the need to shield the capital markets from what he described as a “tyrannical chairman,” referring not only to Gensler but also to any potential future chairs. The aim of the bill is to address the ongoing abuse of power and establish safeguards that serve the market’s best interests over the long term. Davidson underscored the necessity for genuine reforms and the dismissal of Gary Gensler from his role as SEC chair.

This initiative by Davidson had been previously hinted at earlier in the year when he responded to a tweet from Paul Grewal, the legal chief of Coinbase. Joining Davidson in introducing the bill is Representative Tom Emmer, who emphasized that the SEC Stabilization Act seeks to implement sensible changes that prioritize the protection of investors over the impulsive actions of a reckless chair.

According to reports from Fox News, the bill would not only remove Gensler from his position but also redistribute power within the SEC by modifying the roles of the chair and the commissioners. Additionally, it proposes the addition of a sixth commissioner, prohibits any single party from holding a majority on the commission, and establishes an executive director role.

While the lawmakers’ statements did not explicitly mention cryptocurrency, it is worth noting that both Davidson and Emmer have been vocal advocates of digital assets and have voiced criticisms of Gensler’s leadership at the SEC. Emmer, for instance, has accused Gensler of acting in bad faith as a regulator. Furthermore, Davidson serves as the vice chair of the newly formed Subcommittee on Digital Assets, Financial Technology, and Inclusion under the House Financial Services Committee.

The introduction of the SEC Stabilization Act signifies a proactive effort by Representatives Davidson and Emmer to address concerns regarding the SEC’s leadership and its potential impact on the capital markets. Their proposed bill aims to reshape the SEC’s structure and ensure that its priorities align with the protection of investors, rather than being subject to the arbitrary decisions of a chair.