Crypto-friendly Republican lawmakers in the United States have introduced a new bill to remove Gary Gensler as Chair of the United States Securities and Exchange Commission (SEC).
House Majority Whip Tom Emmer of Minnesota and Representative Warren Davidson of Ohio introduced the “SEC Stabilisation Act” this week, which, if passed, would not only remove Gensler but also create a new SEC commissioner position, bringing the total to six.
The proposed legislation also includes the creation of an executive director position in charge of the agency’s day-to-day operations. Furthermore, it states that no single political party may hold more than three commissioner seats at the same time in order to ensure balanced representation.
Davidson emphasises the need for significant SEC reforms, stating that safeguards against a potentially authoritarian chairman, such as the current one, are required to protect US capital markets. He believes that the bill will correct perceived abuses of power while also providing long-term market-oriented protection.
Because of the SEC’s ongoing regulatory crackdown on the digital asset industry, Gensler has been at the centre of controversy in the cryptocurrency sphere. The regulator filed a lawsuit against Ripple in December 2020, alleging the unregistered sale of XRP as a security over an extended period of time. Gensler went after Binance and its CEO, Changpeng Zhao, last week, accusing them of a variety of violations, including deception, conflicts of interest, and failure to disclose.
Furthermore, the SEC accuses Coinbase, one of the most popular cryptocurrency exchanges in the United States, of acting as an unregistered securities exchange, broker, and clearing agency. The Coinbase lawsuit was filed just one day after the SEC filed a lawsuit against Binance.
Read Also: Bitcoin's illiquid supply hits all-time high amid regulatory concerns in crypto markets.
Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.
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