The Chairman of the Securities and Exchange Commission (SEC), Gary Gensler could face unemployment after US Representative Warren Davidson declared he would introduce legislation to fire the SEC chief.
In a Tweet on April 15 in which he responded to Coinbase legal chief Paul Grewal, The crypto-friendly congressman announced his intention to have Gensler removed from office following the SEC’s latest announcement regarding the review of the proposed redefinition of an exchange..
“To correct a long series of abuses, I am introducing legislation that removes the Chairman of the Securities and Exchange Commission and replaces the role with an Executive Director who reports to the Board (where authority resides),” Davidson tweeted..
Yep. To correct a long series of abuses, I am introducing legislation that removes the Chairman of the Securities and Exchange Commission and replaces the role with an Executive Director who reports to the Board (where authority resides). Former Chairs of the SEC are ineligible. https://t.co/VBnkgt8bhM
— Warren Davidson (@WarrenDavidson) April 16, 2023
Yes. To correct a long series of abuses, I am going to introduce a law that removes the president of the Securities and Exchange Commission and replaces him with an executive director who reports to the Council (where the authority resides). Former SEC chairmen are not eligible. https://t.co/VBnkgt8bhM
– Warren Davidson (@WarrenDavidson) April 16, 2023
“Former SEC chairmen are not eligible,” he added..
Gensler told a meeting on April 14 that the proposed rule changes could benefit investors and markets by subjecting certain intermediaries to additional regulatory scrutiny.as well as by “modernizing” the rules that define an exchange.
Similar modifications were proposed in January 2022. At the time, cryptocurrency advocacy groups suggested it was an overreach by the SEC that could jeopardize participation in the space.
The SEC Commissioner Hester Peirce – known as “Crypto Mom” for her pro-crypto positions – criticized the new proposed amendments to the rules in a statement April 14declaring that “stagnation, centralization, expatriation and extinction are the watchwords” of the latest SEC move.
“Instead of embracing the promise of new technologies as we have done in the past, here we propose to embrace stagnation, force centralization, urge expatriation and welcome the extinction of new technologies,” Peirce said..
“Therefore, I disagree,” he added.
In addition to ironing this t-shirt (which republishes code from a comment letter), will I need to register as an exchange before wearing it? “It depends,” per the SEC’s latest release: pic.twitter.com/xD7Lx2kJE6
—Hester Peirce (@HesterPeirce) April 14, 2023
Other than ironing this shirt (which reprints the code from a comment letter), will I have to register as an exchange before putting it on? “It depends,” according to the latest SEC statement: pic.twitter.com/xD7Lx2kJE6
According to Peirce, Unlike in the past, when the SEC embraced new technologies, the modern regulator has been expanding its reach to solve problems “that don’t exist.”.
In addition, he opined that the SEC has taken the approach of refusing to change current rules to accommodate new technologies and new ways of doing business.
“The current Commission tells entrepreneurs who are trying to do new things in our markets to come and sign up,” Peirce said..
“When entrepreneurs find they can’t, the Commission rules out making practical adjustments to our registration framework to help entrepreneurs register, instead rewarding their good faith with enforcement action.”
Peirce also accused the SEC of using the “notice and comment rulemaking process” as a threat..
According to Peirce, due to concerns about the ambiguity and scope of the proposed new rule changes and the SEC’s “limited understanding” of the space, a concept release should have been issued. instead.
“I wish we had proceeded differently,” Peirce said..
In recent years, the SEC has taken more than one high-profile action against cryptocurrency companies such as Ripple, LBRY and Coinbase for alleged violations.
He has also gone after staking and stablecoinswhich has led some critics to argue that the SEC has been using enforcement actions to develop the law on a case-by-case basis rather than creating clear regulations.