- The suggested new SEC structure would be split between party lines.
- At the very top, there would be six commissioners, not one person.
- Many feel Gensler’s running of the SEC has become ‘tyrannical.’
The SEC head, Gary Gensler, has severely ruffled the feathers of the crypto world with lawsuits against Binance and Coinbase, but U.S. congressmen have also had enough of the “tyrannical chair.”
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Two Republican congressmen have proposed the SEC Stabilization Act to restructure the SEC and fire Gary Gensler, but what are the lawmakers proposing? And would it be a viable solution?
A Flipped Solution
For the SEC Stabilization Act, Rep. Warren Davidson, R-Ohio, and House Majority Whip Tom Emmer, R-Minn, are proposing an inversion of the current SEC structure. As Davidson put it, instead of one “Tyrannical Chairman” and four commissioners, there would be six at the top with an executive director underneath them.
Davidson’s and Emmer’s bill would remove Gensler from his position leading the SEC, restructure the commission to redistribute power from the chair to other commissioners, add a sixth commissioner to the body, and create an executive director position overseeing day-to-day operations.
Commissioners would still have rulemaking, investigative, and enforcement authority and be subjected to staggered six-year terms.
Additionally, the SEC Stabilization Act would prevent any political party from controlling more than three seats on the commission.
Fixing an Abuse of Power
Davidson has mentioned his desire to oust Gensler before, while Emmer has been a ‘protector’ of the digital asset realm for some time, speaking up against the scapegoating that happened to crypto during the collapse of crypto-friendly banks earlier this year.
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“U.S. capital markets must be protected from a tyrannical Chairman, including the current one,” Davidson said in a Tweet.
"That’s why I’m introducing legislation to fix the ongoing abuse of power and ensure protection that is in the best interest of the market for years to come. It’s time for real reform and to fire Gary Gensler as Chair of the SEC."
“The SEC Stabilization Act will make common-sense changes to ensure that the SEC’s priorities are with the investors they are charged to protect and not the whims of its reckless Chair.”
It is not just Emmer and Davidson that believe there is an abuse of power. In recent times Gensler was called, on April 18, to testify on his ‘regulation by enforcement’ of the crypto space, ahead of the House Financial Services Committee hearing.
However, even back then, Gensler reiterated his stance that “most crypto tokens are securities.”
On the Flipside
- The SEC has put the heel into Binance in its lawsuit, and former SEC Office of Internet Enforcement Chief John Reed Stark, believes it will lead to criminal charges against the world’s biggest exchange.
Why This Matters
The SEC has taken on the mantle of chief enforcer of the cryptocurrency space. However, many feel the structure is set out to be a dictatorship, which needs to be addressed. The SEC Stabilization Act would certainly make the agency operate in a much fairer and more democratic manner.
Read more about the potential of Binance facing criminal charges:
Binance Will Face Criminal Indictment, Former SEC Chief Warns
Read more about Mark Cuban’s thoughts on the SEC:
Mark Cuban Slams SEC’s Ambiguous and Outdated Crypto Labeling
