"Fire Gary Gensler Act" Filed

On Monday, US Congressman Warren Davidson filed the "SEC Stabilization Act". The aim of the legislation is to reform the SEC, including firing current Chair Gary Gensler.

🚨 NEWS - Today I filed the SEC Stabilization Act to restructure the @SECGov and #FireGaryGensler.

U.S. capital markets must be protected from a tyrannical Chairman, including the current one. It’s time for real reform and to fire @GaryGensler as Chair of the SEC. Statement ⬇️ pic.twitter.com/0VUHxUAhtB

— Warren Davidson 🇺🇸 (@WarrenDavidson) June 12, 2023

Under Gensler, the SEC has adopted a harsh stance against crypto companies, taking a string of enforcement actions without first providing a clear regulatory framework in which these businesses can operate. Most recently, Coinbase and Binance.US have been targeted.

The statement does not mention crypto, but Davidson is known to be crypto-friendly. The proposed new structure for the SEC will see commissioners from both sides of the political spectrum reporting to an Executive Director, rather than a Chair who is essentially in charge.

So basic… #FireGary and de-politicize the world’s biggest and best capital markets. This should be a unifying, nonpartisan plan to restore focus on the mission. Who will be the first Democrat to cosponsor? Tag someone. pic.twitter.com/IbiuuHpwic

— Warren Davidson 🇺🇸 (@WarrenDavidson) June 13, 2023

Will It Pass?

It seems unlikely that Davidson's bill will gain traction, which will require supporters from both parties. However, this is an indication that the SEC's war against crypto is not one-sided. There is awareness of the serious problems with Gensler's approach at the highest levels of American politics, as well as in industry and among the public. The bill comes the week after the Coinbase and Binance enforcement actions, and two days after billionaire investor Mark Cuban warned that it is "near impossible to know, with or without an army of securities lawyers, what is or is not a security in the crypto universe".

The more air time this gets, the more it becomes an election issue, as politicians court younger, crypto-savvy voters.

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