[NEWS] Republican lawmakers introduce bill to remove SEC Chairman Gensler and reorganize the agency

On the 12th, Republican Congressman Warren Davidson and his Republican counterpart Tom Emmer introduced the SEC Stabilization Act, a bill aimed at reorganizing the U.S. Securities and Exchange Commission (SEC) and removing Chairman Gary Gensler from his position.

The announcement alluded to the SEC's tightening of censorship of cryptocurrencies led by Chairman Gensler this year, stating that it is a "corrective measure against abuse of power."

The movement is accelerating, with major cryptocurrency exchanges Binance and Coinbase being sued in quick succession this month for violating securities laws.

"American investors deserve clear and consistent oversight, not political maneuvering. The SEC Stabilization Act will make commonsense changes to ensure that the investors it is mandated to protect come first, not the whims of a reckless chairman," Emmer said.

Davidson also stated, "We must protect America's capital markets from a domineering chairman," and emphasized, "It is time for serious reform and removal of the chairman."

The announcement explained that the background to the creation of this bill was that fundamental structural flaws in the SEC were highlighted during Chairman Gensler's tenure. He then pointed out that under current law, the SEC chairman has a worrying level of discretion.

The SEC Stabilization Act would increase the number of commissioners from the current five to six, and establish an executive director position to oversee day-to-day operations. In addition, the authority previously given to the chairman would be distributed to each commissioner, with a six-year term. It also includes language prohibiting a single political party from holding a majority in the selection of commissioners.

However, since the cooperation of the Democratic Party is essential for this bill, its feasibility remains unclear.

Reference:Announcement

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