House Republicans have taken action to address their concerns regarding the US Securities and Exchange Commission (SEC) and its Chair, Gary Gensler. Representatives Tom Emmer and Warren Davidson recently introduced the SEC Stabilization Act, a bill aimed at removing Chairman Gensler for alleged abuse of power in the agency’s current structure.
A statement from the office of House Majority Whip Emmer emphasized that the bill seeks to address the long string of violations permitted under the SEC’s current structure. Rep. Davidson echoed these sentiments, expressing the need to protect the US stock market from a Chair with authoritarian tendencies. He further highlighted the purpose of the law to remedy the ongoing abuse of power and ensure long-term market protection.
The proposed bill includes several key provisions to reform the SEC. It calls for adding one more commissioner to the existing five-member commission and establishes the role of executive director responsible for overseeing the day-to-day operations of the agency. In addition, the bill aims to prevent one political party from holding more than three commissioner seats simultaneously. The SEC is made up of three Democrats and two Republicans, making bipartisan support necessary for the bill’s success.
Lawmakers have voiced criticism of the SEC’s approach to regulating cryptocurrencies. Gensler chairman has consistently advocated considering most cryptocurrencies to be securities and subject to SEC regulation. He also urged crypto companies to register with the agency. As a result, the SEC recently filed lawsuits against Binance, the world’s largest crypto exchange, and Coinbase, the leading US-based crypto exchange, citing various violations, including failure to register their companies.
Republican Senator Cynthia Lummis strongly criticized the SEC’s lawsuit against Coinbase, deeming the “regulation with enforcement” approach to be detrimental to consumers. He stressed the importance of creating a strong legal framework that allows exchanges to comply with regulations rather than pushing the industry offshore or into the shadows.
To address concerns around digital assets and the SEC’s actions, the House Financial Services Committee, which includes Representatives Emmer and Davidson, will convene Tuesday. The hearing aims to delve into digital asset topics, driving discussion and potential solutions to the regulatory challenges faced by the industry.
Overall, House Republicans’ introduction of the SEC Stabilization Act reflects their concern about Chairman Gensler’s alleged abuse of power. The bill’s provisions seek to restructure the SEC, ensuring balanced representation and effective oversight. It also sheds light on the ongoing debate around cryptocurrency regulation and the need for a comprehensive legal framework that protects consumers while encouraging innovation within the industry. The upcoming hearing further demonstrates the commitment of MPs to address this critical issue in a comprehensive and informed manner.