Two US Republican members of the House have asked for the immediate sack of the current SEC Chairman, Gary Gensler. The House members submitted a bill stating the reason why the SEC chairman should be removed from office and for a restructuring of the agency.
The United States Securities and Exchange Commission (SEC) is an independent agency of the United States federal government, created in the aftermath of the Wall Street Crash of 1929.
The primary purpose of the SEC is to enforce the law against market manipulation and to protect investors. It also oversees the nation’s securities markets and registers securities dealers, brokers, and investment advisers.
The SEC is headed by a five-member commission, appointed by the President and confirmed by the Senate. The commission is responsible for setting rules and regulations governing the securities industry, and for enforcing those rules and regulations. The SEC also has the power to investigate and prosecute securities fraud.
Rep. Warren Davidson, and House Majority Whip, Tom Emmer, who introduced the SEC Stabilization Act, wanted in addition to the removal of Gary Gensler, the current Chairman, a sixth commissioner to be added to the commission and to avoid either Republicans or Democrats having more than three seats in the commission.
Gary Gensler and crypto
Gary Gensler is the current chairman of the United States Securities and Exchange Commission (SEC). He was appointed by President Joe Biden in 2021 and confirmed by the Senate in April of that year.
Gensler is a former investment banker and government official. He served as chairman of the Commodity Futures Trading Commission (CFTC) from 2009 to 2014. He also served as assistant secretary of the Treasury for Financial Markets from 1997 to 1999 and as undersecretary of the Treasury for Domestic Finance from 1999 to 2001.
In recent times, he has shown a huge dislike for the crypto industry with biased treatments of different crypto firms. Emmer said in a session that the SEC chairman did not give the same treatment he gave to Binance and Coinbase to FTX both before and after the SBF-led organization collapsed.
In the first week of June, the SEC under the direction of Gary filed suits against Binance and Coinbase respectively. The crypto exchanges were accused of operating illegally amdnoffeifn securities that were not registered under the laws of securities in the US.
Protect the US capital market
Rep. Warren Davidson said that the decision to introduce the bill was done to protect the US capital market. “U.S. capital markets must be protected from a tyrannical Chairman, including the current one,” he said.
He added that the chairman has abused his powers in terms of regulating the capital market and thus “it’s time for real reform and to fire Gary Gensler as Chair of the SEC.”