Congressional Bill Seeks to Oust SEC Chairman and Overhaul Power Dynamics

SEC Stabilization Act Proposes Firing Chairman and Restructuring Agency in Effort to Safeguard US Capital Markets and Challenge Regulatory Direction

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United States Representative Warren Davidson introduced a bill in the House of Representatives called the SEC Stabilization Act, which was announced on June 12.

One of the main provisions of the bill is the firing of the Chairman of the Securities and Exchange Commission (SEC), Gary Gensler.

Davidson said in a statement:

“US capital markets must be protected from a tyrannical President, including the current one. That is why I am introducing legislation to correct the ongoing abuse of power and ensure the protections that are in the best interest of the market for years to come. It’s time for real reform and to fire Gary Gensler as Chairman of the SEC.”

Davidson stated his intention to introduce the bill earlier this year and made the announcement in response to a tweet from Coinbase’s legal chief Paul Grewal.

The spokesman, Tom Emmer, who is the co-author of the bill, said:

“The SEC Stabilization Act would make common sense changes to ensure that the SEC’s priorities are with the investors it is obligated to protect and not the whims of its reckless Chairman.”

Dismissal and diversification of powers

According to Fox News, the bill would remove Gensler from office and redistribute power between the SEC chairman and the commissioners.

It would also add a sixth commissioner to the agency, prohibit any party from having a majority on the commission and create an executive director position.

Although the lawmakers did not mention cryptocurrencies in their statements, both Davidson and Emmer are known to be in favor of the technology and criticize Gensler’s leadership at the SEC.

Emmer has, for example, called Gensler a “bad faith regulator” and Davidson is the vice chairman of the new Digital Assets, Financial Technology and Inclusion Subcommittee of the House Financial Services Committee.

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