SEC Boss Gensler's Days Over? Rep Davidson to Introduce Legislation

SEC Boss Gensler’s Days Over? Rep Davidson to Introduce Legislation

Updated: 18 April 2023

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This just in, Security and Exchange Commission (SEC) chair Gary Gensler, known to many as one of the “villains of crypto,” might be facing the last days of his employment as the United States representative Warren Davidson is about to release legislation to fire the SEC boss.

This came after Gensler announced the SEC’s statement that the commission would be revisiting the definition of “exchange”.

Yep. To correct a long series of abuses, I am introducing legislation that removes the Chairman of the Securities and Exchange Commission and replaces the role with an Executive Director that reports to the Board (where authority resides). Former Chairs of the SEC are ineligible. https://t.co/VBnkgt8bhM

— Warren Davidson 🇺🇸 (@WarrenDavidson) April 16, 2023

In the tweet. Warren Davidson stated his intentions to correct a “long series of abuses” in which he intends to introduce legislation removing Gensler from his position as the Chief of the Security Exchange Commission.

Continuing his tweet, representative Davidson said that the “Former chairs of the SEC are ineligible”.

Gensler’s comments on April 14, in which he stated that new rule amendments that would bring certain brokers (DEXs) under more scrutiny and rework the meaning of exchange could help investors and the market.

It is not the first time these rules have been proposed. In January 2022, a few months before the market was hit by the crypto winter, the same proposals were made. Many crypto advocacy groups got up in arms at the time, stating that the SEC was overreaching in a way that was detrimental to the cryptocurrency space.

And Davidson isn’t the first government figure to stand against the proposal. “Crypto Mom” Hiester Pierce showed her pro-crypto positions once more by stating that stagnation, centralization, expatriation, and extinction are the “watchwords” that the latest SEC moves suggest.

She said that now is the time to embrace new technology. But instead of doing that, SEC’s proposal is to stagnate, forcefully centralize, expatriate, and make the new technology extinct.

In addition to ironing this t-shirt (which republishes code from a comment letter), will I need to register as an exchange before wearing it? "It depends," per the SEC's latest release: https://t.co/mARz8FzNZD pic.twitter.com/xD7Lx2kJE6

— Hester Peirce (@HesterPeirce) April 14, 2023

She has been very critical of the new SEC chief, going so far as to say that unlike the previous SEC, which was bullish about emerging technologies, the new one is trying to tackle issues that don’t exist.

According to her, SEC has been acting as a gatekeeper to preserve the “legacy money” by stopping new technologies and new ways in which businesses could be done.

Limited Understanding of the Space to Blame

SEC has been known to have only a passing understanding of cryptocurrency developments, and “Crypto Mom” was quick to call them out on that. She stated that the SEC has a limited framework of understanding, and within it, it is trying to regulate a space that has the potential to change tech understanding everywhere.

According to her, what we need now is a new concept instead of regulatory roadblocks.

SEC may the biggest hurdle to crypto development – experts

SEC’s disdain for cryptocurrencies is not new, as it was made apparent due to many high-profile cases in the past. The SEC vs Ripple case is well known, and the commission is also going against Coinbase as LBRY.

Recently, it also has taken a negative stance against staking as well as stablecoins.

Because of the way SEC has been treating the cryptocurrency space, many have been saying that it is seeing all projects separately rather than coming up with a solution.

So, will representative Davidson have the last word land Gensler will be out of SEC? We don’t know. Despite SEC’s deference to providing clear guidelines for crypto assets, other organizations, including IMF, are also seeing cryptos in a negative light.

In September 2022, IMF showed an article titled “The Superficial Allure of Crypto” in which it highlighted all the negative ways cryptocurrency would harm the economy.

What we know is that there is hardly anyone with a balanced view on crypto in power right now – which is needed if things are to change.

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