Republican Congressman Warren Davidson has introduced legislation to remove Securities and Exchange Commission (SEC) Chair Gary Gensler from his role.
The legislation was announced by Davidson via Twitter this weekend, and came in response to proposed rules by the SEC that would redefine the meaning of an “exchange,” while bringing such entities under increased regulatory scrutiny.
Writing on Twitter, Davidson said Gensler needs to be removed “to correct a long series of abuses […].”
To replace the SEC Chair, the Representative suggested that a new Executive Director that reports directly to the SEC’s board should be appointed, while noting that former SEC Chairs will be ineligible for the role.
Davidson’s post referenced a tweet from Coinbase lawyer Paul Grewal with a screenshot of remarks from SEC Commissioner Hester Peirce.
According to the screenshot, Peirce, who is sometimes called “Crypto Mom” for her friendlier stance towards crypto, criticized the SEC’s approach to crypto companies.
Among other things, Commissioner Peirce accused the SEC of actively going after crypto firms instead of helping them get registered as required:
“Today’s Commission tells entrepreneurs trying to do new things in our markets to come in and register. When entrepreneurs find they cannot, the Commission dismisses the possibility of making practical adjustments to our registration framework to help entrepreneurs register, and instead rewards their good faith with an enforcement action.”
Commenting under the screenshot of Peirce’s remarks, the crypto-focused lawyer James Murphy called it a “truly alarming statement” that should give pause to judges to hear crypto-related cases brought by the SEC.
Others agreed, with one user pointing out how regulations “always favor the established, not the disruptors,” and another user suggesting that the SEC likely has kept the process “so complex that applicants give up.”
“The US Congress is the only body that can possibly stop the SEC’s aggressive actions against the crypto industry,” a third user said.
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