It seems that the procedures may soon become even more complex within the crypto crackdown of the US Securities and Exchange Commission (SEC). Because today, June 12, House Republicans have begun pushing for a major restructuring of the regulatory agency.
Last week, the SEC filed civil lawsuits against Binance and Coinbase, citing failing investor protections and mismanagement of customer funds. In the midst of this landscape, congressman Warren Davidson of Ohio and House Majority Whip Tom Bucket of Minnesota introduced the SEC Stabilization Act, calling for the removal of current SEC Chairman Gary Gensler.
SEC Stabilization Act
The two GOP lawmakers accuse Gensler of a series of abuses under the existing SEC structure and are calling for sweeping changes to protect US capital markets. Davidson explained the intent behind the legislation through Twitter, stating: “It is time for real reform and to fire Gary Gensler as chairman of the SEC. The US capital markets must be protected from a tyrannical chairman, including the current one.”
The proposed legislation would redistribute power from the chairman to other commissioners, create an executive director position to manage day-to-day operations, and add a sixth commissioner to the regulatory body. Davidson and Emmer say they designed these changes to provide a clear, consistent overview to investors and the industry, moving away from what they call “political gamemanship.”
“U.S. investors and the industry deserve clear and consistent oversight, not political play,” Emmer said via Davidson’s Twitter thread. “The SEC Stabilization Act will make sensible changes to ensure that SEC priorities are on the investors they are supposed to protect and not the whims of the reckless chairman.”
NEWS – Today I filed the SEC stabilization bill to clear the @SECGov And #FireGaryGensler.
The US capital markets must be protected from a tyrannical chairman, including the current one. It is time for real reform and to fire @GaryGensler as chairman of the SEC. Statement
pic.twitter.com/0VUHxUAhtB
— Warren Davidson
(@WarrenDavidson) June 12, 2023
The bill also sets limits on the SEC’s political control, prohibiting a single political party from controlling more than three seats on the committee. In addition, commissioners would retain regulatory, investigative and enforcement powers and serve staggered six-year terms, much like the Federal Elections Commission (FEC).
While the bill does not explicitly mention cryptocurrency, both Davidson and Emmer are known to be pro-crypto and NFTs. Davidson serves as vice chair of the House Financial Services Committee’s new subcommittee on digital assets, financial technology and inclusion, while Emmer had previously criticized Gensler’s leadership in the SEC.
This proposed legislation comes at a time when Gensler has shown an increasingly dismissive attitude towards cryptocurrencies. This stance, coupled with the SEC’s heightened oversight, has created friction within the regulatory body and the wider market.
Whether the SEC stabilization bill receives enough support to pass into law remains uncertain. However, the proposed bill points to an emerging divide between crypto proponents and traditional regulators.
As the crypto industry continues to evolve, how best to regulate these digital assets will continue to be a contentious and critical issue in the financial world. The SEC Stabilization Act marks a major effort to address these concerns and provides a new direction for the SEC amid the growing importance of digital assets.
Editor’s Note: This article was written by an nft now contributor in collaboration with OpenAI’s GPT-4.
