House Republicans have introduced a bill to dismiss SEC Chairman Gary Gensler and restructure the agency. The bill provides for the addition of a sixth commissioner and barring any political party from holding more than three seats on the board. Meanwhile, Gensler reiterated his stance on crypto market regulation.
Are the bells ringing for the SEC Chairman?
Two Republicans from the House of Representatives are working to impeach SEC Chairman Gary Gensler. In this direction, the members presented a draft law to the parliament, which envisages dismissal. In this context, Representative Warren Davidson of R-Ohio and Tom Emmer, Majority Whip of R-Minn, introduced the SEC Stability Act, which would restructure the SEC and remove President Gary Gensler from office. GOP lawmakers point to Gensler’s “long string of abuses allowed under the current SEC structure.” In line with this, Davidson made the following statement:
US capital markets must be protected from an overbearing President, including the current President. That’s why I’m introducing a bill to rectify ongoing abuses of power and provide market-beneficial protection for years to come. It’s time for real reform and firing Gary Gensler as SEC Chairman.
What does the bill provide?
“American investors and industry deserve clear and consistent oversight, not political games,” said Tom Emmer. “The SEC Stabilization Act will make discreet changes to ensure that the priorities of the SEC are the investors it is charged with protecting, not the whims of its reckless President.” Emmer also thanked Representative Davidson for spearheading this important effort to restore sanity in the SEC.
Davidson and Emmer’s bill would remove Gensler from his position as head of the SEC. It will also restructure the commission, distributing power from the president to other commissioners. In addition, he will add a sixth commissioner to the institution. Moreover, it will create an executive director position to oversee day-to-day operations.
SEC chairman Gary Gensler warns crypto players!
As you follow on Kriptokoin.com, Gary Gensler does not back down after the lawsuits of crypto exchanges Coinbase and Binance. In line with this, Gensler reiterated his stance on crypto regulation. Piper Sandler made some interesting statements before the Global Exchange & Fintech Conference. Gensler once again made a link between the digital assets market and securities laws. He also stated that confidence in capital markets in the US is built on compliance with the law. Additionally, he warned that bankruptcies like FTX could continue to happen without compliance. But he did not address exactly how crypto businesses will adapt.
Interestingly, the SEC Chairman spoke of the need to protect investors, saying that crypto markets should not be allowed to hurt them. In his speech, Gensler cited a conversation that Binance’s then Director of Compliance, Samuel Lim, had with a colleague in 2018 about how the crypto exchange operates as an unlicensed securities exchange in the United States. The same was featured in the SEC’s recent complaint against Binance alleging that it lied to regulators.
Gensler keeps his stance on crypto!
In his keynote, SEC Chairman Gary Gensler reiterated that most cryptocurrencies qualify as securities because they meet the investment contract test. However, the SEC Chairman warned that a lack of compliance could lead to more and more anti-crypto enforcement actions. “Not liking the message is not the same as not getting it,” he said, noting that market participants are well informed about the current situation. Apparently this is an attempt to protect the SEC’s arguments in many crypto cases, which may include a ‘lack of clarity’ stance on regulations. In this context, Gensler made the following statement:
When crypto-asset market participants take to Twitter or TV to say they lack “fair notice” that their behavior may be illegal, don’t believe it. They may have made a calculated economic decision to risk sanctions as the cost of doing business.
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