Republican Congressman Warren Davidson has introduced legislation to remove Securities and Exchange Commission (SEC) Chairman Gary Gensler from office.
The initiative was announced by Davidson via Twitter this weekend and is in response to the Securities and Exchange Commission’s proposed regulations that would redefine the meaning of “stock exchange” while subjecting such entities to increased regulatory scrutiny.
Writing on Twitter, Davidson said Gensler should be removed “to correct a long line of abuses […]”.
To replace the SEC chairman, the representative suggested appointing a new executive director who reports directly to the SEC board, noting that former SEC chairs would not be eligible for the role.
Davidson’s post linked to the lawyer’s tweet Coinbase Paul Gruwal with a screenshot of the SEC Commissioner’s remarks Hester Pierce .
According to the screenshot, Pierce, who is sometimes called the “mother of cryptocurrency” for her a more friendly attitude towards cryptocurrency criticized the SEC’s approach to cryptocurrency companies.
Among other things, Commissioner Pierce accused the SEC of actively going after crypto companies instead of helping them register as required:
“Today the Commission is telling entrepreneurs who are trying to do something new in our markets to come and register. When businesses find they can’t, the Commission rejects the possibility of making practical changes to our registration system to help businesses register, and instead rewards their good faith with enforcement.”
Commenting on a screenshot of Pierce’s remarks, crypto-focused lawyer James Murphy called it a “really troubling statement” that should give judges pause to consider crypto-related cases brought by the SEC.
Others agreed, including one user noted that rules “always favor established over disruptive,” and another user assumed that the SEC likely kept the process “so complicated that applicants give up.”
“The US Congress is the only body that can possibly stop the SEC’s aggressive actions against the crypto industry” — said third party user.
