Proposal by US Congress members to restructure SEC, could lead to Gary Gensler stepping down?

Original Title: "Will US Congress Members Propose to Reorganize the SEC and When Will Gary Gensler Step Down?"

Original Source: Odaily Star Daily

Early this morning, Warren Davidson, a member of the United States House of Representatives, announced that he has officially submitted the "Stablecoin Tethering and Bank Licensing Enforcement (STABLE) Act" to the U.S. Securities and Exchange Commission (SEC), calling for the restructuring of the SEC and the dismissal of its chairman, Gary Gensler. The bill has also received support from another House member, Tom Emmer. Warren Davidson's tweet contains more information.

In a tweet, Warren Davidson wrote: "The US capital market must be protected from the influence of tyranny, including the current chairman. The original intention of the legislation was to address the issue of power abuse and ensure protection measures that best serve the market's interests in the coming years. It is time for real reform and to dismiss Gary Gensler as SEC chairman." The tweet received nearly 4 million views, 44,000 likes, and 16,000 retweets.

"American investors and the industry should receive clear and consistent supervision, not political games," said Tom Emmer in a press release. "The 'US SEC Stable Act' will make sensible changes to ensure that the priority of the US SEC is the protection of investors they are responsible for, rather than the whims of their reckless chairman."

According to the proposal, after removing Gary Gensler from the position of chairman, the commission will be restructured and the chairman's powers will be allocated to other commissioners. The formulation, enforcement, and investigation of all rules will also be led by these six commissioners, with a term of six years. In addition, an executive director position will be established to oversee daily operations. To prevent any political party from controlling the SEC, no party can have more than three seats on the commission, and a structure similar to that of the Federal Election Commission (FEC) will be implemented. As shown below:

In fact, Warren Davidson has appeared in various encryption issues. He is also the Vice Chairman of the Republican Cryptocurrency Group Committee, dedicated to the supervision and legislation of the encryption industry. Last year, he and four other members of Congress jointly proposed a new bill to support adding cryptocurrencies to 401(k) retirement plans.

As early as two months ago, at a hearing of the House Financial Services Committee, Warren Davidson announced his intention to introduce a new bill to impeach Gensler and appoint an executive director to fill the vacancy. Recently, the SEC has repeatedly taken strong actions, suing crypto giants such as Binance and Coinbase, disrupting the stable situation of the US crypto market, further fueling the dissatisfaction of lawmakers such as Warren Davidson, which led to the introduction of today's bill.

Although Gary Gensler is currently receiving a lot of criticism in the cryptocurrency market and has made contradictory statements in the past (for example, in 2019, Gary praised Algo's platform and its technological innovation, but now he has classified it as a security), there is still a long way to go before he truly falls from grace.

(Seats in Congress for both parties)

From the perspective of the current political landscape in the United States Congress, even if the "Stablecoin Tethering and Bank Licensing Enforcement (STABLE) Act" is passed in the House of Representatives today, it is unlikely to continue in the Senate controlled by the Democratic Party, as SEC Chairman Gary Gensler is also a Democrat. Moreover, the Democratic Party has been hoping to make the SEC the primary regulatory agency for cryptocurrencies, and it is even less likely to self-harm and relinquish power.

The "Stable Act" proposed by the SEC in the United States is destined to come to nothing. For the Republican Party, a viable solution is to support the CFTC (Commodity Futures Trading Commission) in a showdown with the SEC. For the cryptocurrency market, the CFTC's regulation is relatively "mild" and the list of prosecutions is not as long as the SEC's.

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