House Republicans have introduced a bill aimed at removing Gary Gensler, the current Securities and Exchange Commission (SEC) chairman, from his position. As reported by Fox News, the SEC Stabilization Act, introduced by Rep. Warren Davidson of Ohio and House Majority Whip Tom Emmer of Minnesota, seeks to restructure the SEC and address what the lawmakers perceive as a “long series of abuses” under Gensler’s leadership.
Davidson emphasized the need to protect U.S. capital markets from a “tyrannical Chairman,” stating that the legislation addresses the ongoing abuse of power and ensures long-term market protection. Emmer echoed this sentiment, asserting that American investors and industry require clear and consistent oversight rather than political maneuvering.
Call for Several Major Changes
The bill proposed by Davidson and Emmer entails several key changes. Firstly, it calls for Gensler’s removal as SEC Chair. Secondly, it seeks to restructure the commission by redistributing power from the chair to other commissioners. The bill also proposes the addition of a sixth commissioner and the establishment of an executive director role to oversee day-to-day operations.
Commissioners would retain their rulemaking, investigative, and enforcement authorities with staggered six-year terms. Furthermore, the legislation aims to prevent any political party from controlling more than three seats on the commission, similar to the structure of the Federal Elections Commission.
Gensler’s connection to the Steele dossier controversy was raised during a recent House Appropriations Subcommittee hearing by Rep. Byron Donalds of Florida. Donalds questioned Gensler regarding his involvement in facilitating payment for the dossier during his tenure as Chief Financial Officer of Hillary Clinton’s 2016 presidential campaign. Gensler responded that he was not aware of any such payment.
The bill introduced by Davidson and Emmer reflects their concerns about Gensler’s leadership at the SEC and their desire to implement reforms that prioritize investor protection and limit the influence of any single political party within the commission. As the legislation moves forward, its potential impact on the SEC and Gensler’s future role remains to be seen.
It is worth noting that the SEC filed lawsuits against prominent cryptocurrency exchanges Coinbase and Binance last week. Should the bill proceed and bring about changes in the SEC’s structure and leadership, it may have implications for the ongoing lawsuits and future enforcement efforts targeting crypto exchanges.
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