US Securities and Exchange Commission (SEC) Chairman Gary Gensler may face job losses after US Rep. Warren Davidson announced that he would pass legislation to fire the US Securities and Exchange Commission (SEC) chairman.
In an April 15 tweet in response to Coinbase Chief Legal Officer Paul Grewal, the crypto-friendly congressman announced Gensler’s intention to fire him as SEC chairman following the regulator’s recent announcement to reconsider a proposed redefinition of “exchange.” Position.
“To correct a litany of abuses, I am introducing legislation to remove the SEC Chairman and replace him with a CEO who reports to the Board. Former SEC Chairman is ineligible.”
Yes. To correct a litany of abuses, I am introducing legislation to remove the chairman of the SEC and replace him with an executive director who reports to the Board of Directors (the seat of power). Past chairmen of the SEC are not eligible. https://t.co/VBnkgt8bhM
— Warren Davidson (@WarrenDavidson) April 16, 2023
At its April 14 conference, Gensler said the proposed rule amendments could benefit investors and the market by subjecting some brokers to additional regulatory scrutiny, as well as defining “modernized” rules for exchanges.
A similar amendment was proposed in January 2022. At the time, crypto advocates argued that conduct beyond the SEC’s jurisdiction could jeopardize airtime participation.
SEC Commissioner Hester Peirce criticized the proposed new rule amendments in an April 14 statement Bitcoin Magazine report.
“Instead of embracing the promise of new technologies as we have done in the past, here we are proposing to embrace stagnation, enforced centralization, urge foreigners to leave and welcome the extinction of new technologies. Therefore, I disagree.”
Peirce argues that, unlike the SEC in the past, which embraced new technologies, modern regulators have broadened the scope of their activities to address “non-existent” problems.
Over the past few years, the SEC has brought a number of high-profile lawsuits against crypto companies including Ripple, LBRY, and Coinbase for alleged violations.
It also targets staking and stablecoins, leading some critics to argue that the SEC uses enforcement actions to create legislation on a case-by-case basis, rather than creating clear regulations.
- Commissioner Hester Peirce Criticizes SEC’s Intent to Broaden Definition of “Exchange”
- SEC: Recent Lawsuit Undercuts Ripple Labs’ Fair Notice Defense
As reported by Cointelegraph