Cryptocurrency circles are buzzing with news about the latest turn of events involving Grayscale lawsuit and considered reactions to the role Gary Gensler, the chair of the SEC, has played so far. It appears as if Gensler might have barked up the wrong tree, even prompting a US Congressman, Warren Davidson of Ohio, to request his removal following the Grayscale ruling on Tuesday.
Davidson, attesting to the seemingly unpredictable nature of Gensler’s SEC decisions, argued that Grayscale’s legal victory is proof enough that Gensler’s handling of matters at the SEC holds insufficient stead. The court had previously upheld Grayscale’s plea, revoking the SEC’s order, which implies a tangible possibility for a Bitcoin spot ETF emergence on the US market. However, this eventuality comes shrouded in uncertainty.
Interestingly, Congressman Patrick McHenry, R-N.C., who presides over the House Financial Services Committee, has responded to Grayscale’s triumph, questioning the validity of Gary Gensler’s seeming onslaught against the digital asset framework. McHenry stated that the court’s scepticism towards Gensler’s conduct supports the demand for more comprehensive regulation, like the proposed Financial Innovation and Technology for the 21st Century Act.
McHenry, alongside other Republican lawmakers, drafted this proposed legislation articulating the SEC and the Commodity Futures Trading Commission’s (CFTC) role in crypto supervision. Although the bill has made progress across two House committees, it awaits the Biden administration’s approval to be codified into law.
Former Senator Pat Toomey also commented on the ruling, advocating for the legal win while stating it as a lawful judgment serving American consumers by rejecting the SEC’s “arbitrary and capricious” refusal towards Grayscale’s Bitcoin Trust-to-ETF conversion application.
This saga with Gensler as SEC chair started back in June, when two House Republicans, Rep. Davidson and House Majority Whip Tom Emmer, R-Minn, drafted the “SEC Stabilization Act.” This wished-for legislation called for Gensler’s dismissal and an “executive director’s” appointment to supervise the agency’s operations. As a matter of fact, these voices join a choir of crypto enthusiasts demanding Gensler step down from his SEC role. One could argue that a sense of unity permeates through the crypto community supporting this stand, exemplifying a collective yearning for a clear, well-articulated, and comprehensible regulation framework in the US.