House Republican Leader Tom Emmer and his fellow Republican Warren Davidson introduced a bill to remove Gary Gensler, the head of the SEC, and to restructure the agency.
According to Emmer’s statement, the proposed “SEC Stabilization Act” would put an end to the “ongoing abuses” by Gensler that have become possible under the Commission’s current structure.
“American investors and industry deserve clear and consistent oversight, not political games. The SEC Stabilization Act will introduce changes grounded in common sense, ensuring the Commission’s priorities are tied to the investors they are meant to protect, not to the whims of its reckless chairman,” Emmer said.
According to Emmer’s remarks, Gensler’s tenure has revealed a fundamental flaw in the SEC’s structure. The level of autonomy granted to the chair effectively renders the other four commissioners superfluous, the lawmakers argue.
The bill would introduce a sixth commissioner and create an executive director role to oversee the regulator’s day-to-day operations.
So basic… #FireGary and de-politicize the world’s biggest and best capital markets. This should be a unifying, nonpartisan plan to restore focus on the mission. Who will be the first Democrat to cosponsor? Tag someone. pic.twitter.com/IbiuuHpwic
— Warren Davidson ?? (@WarrenDavidson) June 13, 2023
Under the proposal, commissioners would retain their powers over rulemaking, enforcement and investigations. They would be elected in staggered six-year terms. No political party could hold more than three representatives on the SEC.
In April, Gensler faced sharp criticism from Republicans over the agency’s stance on cryptocurrencies during House hearings.
Earlier in the same month, Davidson introduced a bill, proposing the removal of the head of the SEC from his post.