Gary Gensler’s Position at SEC in Jeopardy
Congressman Warren Davidson has announced his intention to remove Gary Gensler from his position as the current chair of the US Securities and Exchange Commission (SEC), putting Gensler’s career in jeopardy.
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Warren has taken to Twitter to announce his plans to put an end to the series of abuses of power by Gary Gensler. According to Warren, he's proposing some new legislative changes that he believes will do the trick. The cunning proposal includes replacing the role of the SEC Chair with that of an executive director, who will be accountable to the Board. And as the icing on the cake, former SEC chairs will be banned from holding this position, as proposed by Davidson.
Tweet by Warren Davidson Source:
The statement came shortly after a contentious SEC decision to review the definition of “exchange,” with the view that it should include DeFi platforms. This would mean that these platforms would be obliged to follow the rules of a corresponding regulator.
Gary Gensler, explaining the rationale behind these potential amendments, stated that they would benefit investors and the overall market by increasing legislative oversight over intermediaries and financial service providers. However, advocacy groups within the crypto community have expressed concerns about the possibility of these amendments extending beyond the jurisdiction of the SEC.
SEC Commissioner Hester Peirce, also known as “Crypto Mom,” has openly criticized the proposed changes that could potentially affect decentralized exchanges. She emphasized that SEC's approach would lead to stagnation, centralization, expatriation, and extinction of new technology. According to Peirce, the regulator is solving non-existent problems instead of adapting rules to current trends in the crypto industry. She also accused the SEC of using scare tactics.
In recent years, the US Securities and Exchange Commission (SEC) has initiated controversial legal battles against prominent crypto companies like Ripple and Coinbase. Additionally, the agency has set its sights on the staking and stablecoin industries, prompting some critics to accuse the SEC of engaging in pseudo-regulation through selective enforcement actions, rather than developing clear and transparent rules.
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