US Congressman Proposes To Fire Gary Gensler From SEC Chair Position

Chairman of the US Securities and Exchange Commission, Gary Gensler. (Photo; Doc. Bitcoin Insider)

JAKARTA - A member of the United States Congress, Warren Davidson (R-Ohio), announced plans to remove the Chair of the Securities and Exchange Commission (SEC), Gary Gensler, in a tweet on April 16. According to Davidson, the legislation will replace Gensler's role with an Executive Director who reports to the SEC Council.

Davidson also stated that the former SEC chairman did not qualify for the lower position. If the legislation is successful, Gensler will no longer be able to serve in leadership capacity in the Commission, but can still serve in other positions.

Davidson's legislative statement comes in response to Paul Grewal's tweet, CLO Coinbase, which concerns the influence of the broader "exchange" definition that the SEC is pursuing. The broader definition could affect DeFi platforms and other services that are usually not considered exchanges, in accordance with SEC observations themselves.

Davidson appears to be reacting to a campaign on Twitter calling for Gensler's removal. At the end of March, he wrote: "Let's make the #FireGary move bipartisan!"

Davidson has also criticized Gensler and the SEC before. In November 2022, he accused Gensler and the SEC of selective law enforcement following the fall of FTX. In October 2022, he criticized the SEC's decision to punish Kim Kardashian for crypto promotions. In February 2023, he accused the SEC of regulation through law enforcement when suing Kraken for its staking services.

The SEC Board of Commissioners currently has five members. Two commissioners - Hester Peirce and Mark Uyeda - regularly disagree with regulatory decisions that are strict in crypto policy, including some of the above issues.

Davidson and his supporters believe that the legislature will help protect crypto innovation and ensure that the SEC does not act arbitrarily against this growing industry. However, the plan drew criticism from some, which considers it an attempt to weaken the SEC authorities and reduce investor protection.

It is not yet clear whether this legislation will have sufficient support in Congress, or whether it will be an effective action to remove Gensler from his position at the SEC. Even so, discussions about SEC roles in the crypto industry and proper scrutiny of the market continue to be a topic debated around the world.