US Lawmakers Set to Fire SEC Head Gary Gensler through ‘SEC Stabilization Act’

Jimmy Aki
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US House of Representatives member Warren Davidson has introduced the Securities and Exchange Commission (SEC) Stabilization Act, which incorporates provisions for the removal of Gary Gensler as chairman.

Rep Members File “SEC Stabilization Act” to Restructure the Commission

Warren Davidson took to Twitter on June 12 to announce the filing of the SEC Stabilization Act, co-sponsored by Rep. Tom Emmer.

The proposed Act seeks to restructure the US SEC and remove its current chair, Gary Gensler.

Davidson’s motivation behind introducing the Act is to safeguard the US capital markets from what he perceives as a tyrannical chairman.

As stated in a tweet, his objective is to prevent the abuse of power by the SEC head, prevent its reoccurrence, and establish safeguards following Gensler’s removal.

Davidson also mentioned that the House Majority Whip, Tom Emmer, joined in the critical fight to protect the US capital markets.

According to him, Emmer’s perspective is that political gamesmanship should be eliminated from the markets, and the industry should be governed by clear and consistent oversight.

Both Davidson and Emmer believe that their bill will end the long series of abuses permitted by the current SEC structure under Gary Gensler.

Furthermore, the Act aims to introduce “common-sense” changes that prioritize investor protection over the unchecked authority of a reckless Chairman.

What Changes Will the SEC Stabilization Act Make?

Aside from removing Gary Gensler as SEC chair, the bill by Congressmen Davidson and Emmer seeks to redistribute power between the chairman and commissioners at the highest level of the SEC.

Additionally, the bill introduces a new executive director position and a sixth commissioner to the agency, ensuring that no single party holds a majority on the commission.

Davidson shared a simple image containing a diagram of what the new structure of SEC governance will look like in a tweet.

He explained that the new structure contained in SEC Stabilization Act would ensure that the six commissioners carry out all rulemaking, enforcement, and investigations while the executive director handles day-to-day operations.

Under the SEC Stabilization Act, the six commissioners will serve a 6-year term, and the overall management structure of the SEC will resemble that of the Federal Elections Commission (FEC).

Meanwhile, Republican Senator Bill Hagerty has expressed his views on the recent actions of Gensler, particularly concerning the digital asset industry.

Hagerty said that the SEC’s attempt to undermine the industry is deliberate. He pointed to the SEC’s crackdown on Coinbase as evidence of the regulators’ hypocrisy and hidden agendas.

The senator revealed that the SEC, under Gensler, approved Coinbase’s IPO just over two years ago.

However, the commission’s stance has since changed, with allegations of the company being involved in illegal activities.

His comments align with Coinbase CEO Brian Armstrong’s explanations in a tweet on June 6.

Armstrong disclosed that the commission had thoroughly reviewed the company’s business in 2021 before allowing them to go public.

However, the same SEC filed a lawsuit against Coinbase on June 6, accusing them of operating as an unregistered broker, exchange, and clearing agency.

About Jimmy Aki PRO INVESTOR

Based in the UK, Jimmy is an economic researcher with outstanding hands-on and heads-on experience in Macroeconomic finance analysis, forecasting and planning. He has honed his skills having worked cross-continental as a finance analyst, which gives him inter-cultural experience. He currently has a strong passion for regulation and macroeconomic trends as it allows him peek under the global bonnet to see how the world works.