Will SEC Chairman Gensler be replaced for crypto abuse?
US Representative Warren Davidson recently took to Twitter to announce that he is introducing legislation that would likely “remove” the chairman of the Securities and Exchange Commission. The role will be replaced with a CEO who reports to the board. Davidson clarified that former chairmen of the SEC are “not qualified.” Specifically, the representative added that the legislation is being introduced to “correct” a “long series of abuses.”
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This means that current chairman Gary Gensler’s position may be in jeopardy. Davidson’s tweet comes on the heels of the SEC’s recent exchange announcement. In a meeting last week, Gensler said the changes will continue to benefit investors and the market as a whole. This will be done by bringing certain brokers under further regulatory scrutiny. Furthermore, Gensler added that the rules defining a stock exchange will be modernised. He said,
“This will explain the evolution and electronification of trading platforms over the past 25 years… Given how crypto trading platforms operate today, many of them are currently exchanges regardless of this reopening release we are considering.”
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The bigger picture
Davidson tweeted about the new legislation proposed by quote-tweeting Coinbase’s chief legal officer, Paul Grewal, who praised Hester Piece’s recent critical comments. In a recent statement, ‘Crypto Mom’ noted that the amendment would promote “stagnation, centralization, expulsion and extinction.” She said,
“Today’s commission is asking entrepreneurs who are trying to do new things in our markets to come in and register. When entrepreneurs find they cannot, the Commission rejects the opportunity to make practical adjustments to our registration framework to help entrepreneurs register, and instead rewards their good faith with an enforcement action.
She added,
“Today’s commission treats the notice-and-comment rulemaking process not as a conversation, but as a threat.”
People from the community continued to appreciate Davidson’s latest announcement. William Mougayar, author of The Business Blockchain, tweeted that the US Congress is the “only body” that could possibly stop the SEC’s aggressive actions against the crypto industry.
It should be noted that for the legislation to be enforced, it must first be introduced and then passed in the House. After that, it must go to the Senate for consideration before reaching the president’s desk for his final signature.
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