In a surprising turn of events, two Republican congressmen, Warren Davidson (R-OH) and Tom Emmer (R-MN), have taken a stand against the U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler. Davidson announced on Twitter the filing of the SEC Stabilization Act, which aims to restructure the SEC and remove Gensler from his position, in an effort to protect the U.S. capital markets from what they perceive as a tyrannical chairman.
These congressmen believe that Gensler’s governance of the crypto market is lacking, resulting in a detrimental impact on the industry and potentially driving it overseas. The legislation, Emmer’s website states, was created in response to a list of abuses committed by Gensler, including the so-called “hotel California rule” for crypto that provides no resolution or clarity for market participants.
Some might argue that it is essential for regulators to have a firm hand in guiding the emerging crypto industry. However, critics, including Emmer and Davidson, believe that “American investors and industry deserve clear and consistent oversight, not political gamesmanship.” The concerns of these congressmen echo those of the crypto industry, as evidenced by Coinbase‘s recent statements about the SEC’s enforcement-only approach without clear rules surrounding digital assets.
Even within the SEC, criticism of Gensler’s approach has arisen. Commissioner Hester Peirce, also known as “Crypto Mom” for her pro-crypto stance, has often expressed disapproval of the commission’s attempts to regulate crypto using existing financial industry rules. The SEC Stabilization Act, should it come into effect, would grant more influence to commissioners like Peirce, putting the “rulemaking, enforcement, and investigation authority” under six commissioners (one more than the current five). These commissioners would have staggered six-year terms, with no more than three affiliated with the same political party.
The legislation also proposes the appointment of an Executive Director to handle the agency’s daily operations, taking some of the decision-making power away from the Chairman. This restructured SEC could potentially alleviate some of the concerns surrounding the regulatory environment for the crypto industry, providing more clarity and consistency to both investors and businesses.
The proposed SEC Stabilization Act has undoubtedly sparked conversation and highlighted the existing tensions within the U.S. crypto regulatory environment. As the industry continues to grow and evolve, it remains to be seen whether the Act will gain enough support to pass and bring about the desired change or simply act as a catalyst for further regulatory discussions. With the U.S. Congress having recently taken a proposed 30% Bitcoin mining tax off the table, it seems clear that crypto regulation continues to be a topic of interest and contention among lawmakers.
Source: Decrypt
