- The United States House Of Representatives proposed a new bill to curtail government spending.
- A lawmaker has proposed an amendment targeting the Securities and Exchange Commission chair.
- SEC Chair Gary Gensler has maintained a stern approach to regulating the cryptocurrency industry.
Regulation in the cryptocurrency industry has become quite the buzzword as financial authorities worldwide tighten oversight on the asset class. Throughout 2023, the U.S. Securities and Exchange Commission (SEC) Chair Gary Gensler has been a focal point for controversy, primarily due to his intensified enforcement actions within the industry.
Gensler’s actions have drawn increased scrutiny, and the House Rule Committee has accused him of exacerbating financial challenges for the nation.
How About a Dollar Salary?
On November 6th, U.S. congressman Tim Burchett introduced an amendment proposal to the Financial Services and General Government (FSGG) bill, suggesting a significant salary cut for chair Gary Gensler to $1 annually.
“At the end of the bill (before the short title), insert the following: SEC. The salary of Gary Gensler, Chairman of the Securities and Exchange Commission, shall be reduced to $1.”
The bill, initially proposed on July 17th, is a part of the broader push of the FSGG to curtail government spending across various agencies. Gensler’s tenure as SEC Chair has allegedly been marked by contentious financial issues, with lawmakers asserting that his regulatory actions have contributed to these challenges.
House Representative Steve Womack also emphasized that certain regulatory bodies have become a financial drain due to overregulation, promoting the narrative of the SEC’s overreach and aggressive regulatory approach.
The Committee recommended a $1,999,663,000 budget for SEC Salaries and Expenses, fully derived from offsetting fee collections.
If passed, the bill could result in either a substantial defunding of Gensler’s current estimated $300,000 annual salary or his removal as SEC chair, potentially impacting regulations in the crypto industry.
Gary Gensler vs. the U.S Crypto Industry
The SEC chair’s actions have been anything but passive throughout the year, recording some of the most controversial legal showdowns against major cryptocurrency exchanges and projects.
On June 5, 2023, the commission initiated legal actions against cryptocurrency exchange Binance, Binance’s U.S. affiliate BAM Trading, and CEO Changpeng “CZ” Zhao. The 13-count charge alleged several violations of U.S. laws, including the sale and offer of unregistered securities such as BNB and Binance USD (BUSD).
In addition to Binance, Coinbase, one of the largest platforms in the United States, was targeted by the commission. The regulator alleged that the majority of the exchange’s crypto offerings are considered to be securities and should have been registered accordingly.
Prominent crypto entity Ripple has also been caught in the commission’s regulatory crosshairs. Gensler criticized crypto projects for failing to register and comply with securities laws, arguing that this deprives investors of critical protections.
On the Flipside
- The proposal by Representative Tim Burchett is not final and will require approval from a majority of the House members to take effect.
- On November 1st, the SEC issued a subpoena to PayPal to provide PYUSD stablecoin data, raising concerns of an SEC vs BUSD deja vu.
- In June, Gary Gensler defended the commission’s industry crackdown, emphasizing the need for crypto security issuers to register the offer and sale of their investment contracts.
Why This Matters
The proposal to reduce the SEC chair’s salary to $1 could impact Gensler’s approach to regulating the crypto industry. This might result in reevaluating his actions towards entities and projects, creating a more favorable environment for firms operating within the United States.
To dive deeper into the SEC vs Coinbase legal showdown, read here:
SEC Intensifies Legal Clash Against Coinbase In New Lawsuit
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