Congressman Warren Davidson Attempts To Fire SEC’s Gary Gensler

April 18, 2023 2:16 pm Comments

It appears that there are some within the government that are also against the actions of the SEC”s chairman Gary Gensler and his agenda against crypto.

As a result, Gensler’s position within the SEC could now be at risk as it was revealed that US Representative Warren Davidson has introduced a new piece of legislation to fire Gary Gensler from his position at the SEC.

This is considered a very necessary action due to some major concerns from the crypto community based on Gensler’s recent comments.

He had previously commented that he intended to revisit the proposed definition of an exchange and may possibly update it.

This would likely make crypto exchanges subject to even more regulatory scrutiny and these comments were called out directly by Coinbase’s chief legal officer Paul Grewal. reports:

Davidson’s tweet was a response to Coinbase’s chief legal officer Paul Grewal’s tweet, where he speaks about Gensler’s intention to revisit the proposed redefinition of an exchange.

During a meeting held last week, Gensler stated that the proposed amendments would have a positive impact on both investors and the market.

This would be achieved by subjecting certain brokers to increased regulatory scrutiny.

In addition, Gensler announced that the definition of an exchange would be updated to modern standards.

The United States Representative also stated that former chairs of the SEC are ineligible. He stated that the legislation is being introduced to correct a long series of abuses.

Whether or not this new piece of legislation will gain enough support is still to be determined, but it indicates the level of distrust that many lawmakers have of the SEC under Gensler’s leadership.

Davidson has shared that he intends to remove Gensler and replace him with an executive director that reports to the Board.

Gensler’s proposed amendments to the definitions of an exchange have also not passed yet, but it is clear that this means that the SEC is stubborn in continuing to regulate the crypto market based on its own interpretation of the rules.

This would be negative for the overall industry and would continue to drive crypto companies and innovation out of the United States.

CoinTelegraph concludes:

According to Peirce, unlike in the past when the SEC embraced new technology, the modern regulator has been expanding its reach to solve problems “that do not exist.”

She further opined the SEC has taken the approach of refusing to alter current regulations to allow room for new technologies and new ways of doing business.

“Today’s Commission tells entrepreneurs trying to do new things in our markets to come in and register,” Peirce said.

“When entrepreneurs find they cannot, the Commission dismisses the possibility of making practical adjustments to our registration framework to help entrepreneurs register, and instead rewards their good faith with an enforcement action.”

Peirce also accused the SEC of using the “notice-and-comment rulemaking process” as a threat.

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