US Congress to propose removing SEC chair over ‘abuses’.

A Republican from Ohio in the U.S. House of Representatives, Warren Davidson, will introduce legislation that would remove Gary Gensler from the post of SEC chair.

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

«To correct a series of abuses, I am proposing legislation that would replace the Chairman of the SEC with an Executive Director who reports to the Board. Former Chairs of the Commission would not have such authority», — the lawmaker said.

The impetus for the initiative was Gensler’s plan to revisit the definition of ‘exchange,’ which sparked a wave of criticism from crypto-industry representatives.

On April 14, 2023, the head of the SEC stated that the proposed amendments to the rules could benefit investors and markets, subjecting some brokers to enhanced regulatory oversight.

In January 2022 the Commission proposed similar amendments. At the time, Coin Center called the adjustments unconstitutional and beyond the SEC’s authority.

The current initiative met resistance from industry-friendly commissioner Hester Peirce.

«Instead of promising new technologies, we are proposing to accept stagnation, forced centralization, urge exodus and welcome the disappearance of new technologies», — she said.

The official noted that the SEC’s current approach is to refuse to change existing rules to make room for new technologies and ways of doing business.

«The Commission tells entrepreneurs to come and register. When they find this impossible, the agency rejects the possibility of making practical changes to help businesses take this step. Instead, the SEC rewards their diligence with enforcement actions», — she fumed.

Earlier, House Republican Leader Tom Emmer criticised the Gensler approach to overseeing digital assets.

At the end of 2022, the congressman said there is a need for the SEC chief to spell out their approach to regulating the digital-asset market in hearings.

In 2023, the Commission pointed to violations at Coinbase, Kraken, Gemini and Genesis.

In March, Gensler suggested that tokens on the Proof-of-Stake consensus algorithm could be considered securities under U.S. law.

A month earlier, the head of the agency hinted at the possibility of recognition of all cryptocurrencies, excluding Bitcoin, under this status. His position was criticized by industry lawyers.

Earlier, Gensler called the cryptocurrency market centralized. He urged platforms to approach the SEC on whether a given asset should be deemed an investment contract. He also warned of possible prosecution of unregistered Bitcoin exchanges.

Hearings are scheduled for April 18 with the participation of SEC Chair Gary Gensler regarding the circumstances of the arrest of former FTX head Sam Bankman-Fried .