Since his chaotic arrival at the head of the SEC, Gary Gensler crystallizes the wrath of the Republicans. Because, its erratic and abusive approach to crypto regulation. Some elected Republican officials are now openly calling for his ouster.
Gary Gensler, an unpredictable regulator who harms innovation according to Republicans
According to Warren Davidson, who now enjoys the support of Tom Emmer, Gensler adopted an arbitrary regulatory approach. But also excessive and fluctuating which has seriously deteriorated relations between the SEC and the crypto industry.
Gensler is accused to exceed his powers and serving a political agenda to the detriment of American crypto investors and entrepreneurs. Its incessant about-faces and its coercive approach to the regulation of crypto-assets are strongly criticized.
Republican elected officials denounce a glaring lack of clarity, consistency and transparency in its positions. This penalizes technological innovation and drives crypto investments out of the United States.
They also criticize him for an ideological bias marked by visceral distrust towards the decentralized universe of the blockchain, instead of reasonably regulating the risks.
An in-depth overhaul of the SEC called for
Republican elected officials, led by Davidson, introduced an ambitious bill called the “SEC Stabilization Act,” to carry out a major structural overhaul of the SEC and remove its president Gary Gensler from office.
This project intends to respond to the excesses of Gensler’s mandate by strengthening the supervision and supervision of the American crypto regulator. He therefore proposes to appoint a 6th commissioner to the SEC in addition to the 5 existing ones. This new commissioner would be designated by the American president and approved by the Senate. The text also suggests creating an executive director position, which would be responsible for overseeing the day-to-day operations of the SEC. This director would report to the commissioners.
At the same time, the president of the regulatory body would be demoted to the simple rank of commissioner among the others and would have his extensive executive powers withdrawn. Concretely, Gary Gensler would lose his position as president but would keep his seat as commissioner. Above all, the bill imposes strict parity between Democrats and Republicans within the college of commissioners, with a maximum of 3 seats for each party.
This Republican initiative marks a critical step in the heated debate around crypto regulation in the United States. Time will tell whether these proposals for a thorough overhaul of the SEC can succeed in the face of the Biden administration.
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