House Majority Whip Tom Emmer and Representative Warren Davidson have revealed legislation that aims to remove SEC Chair Gary Gensler.
Gensler has received fire from members of Congress who believe he has not pursued rule-making to enable digital asset innovation while focusing his efforts on issues beyond the purview of the Commission – such as ESG items.
Emmer and Davidson have crafted the SEC Stabilization Act that is designed to compel the removal of Gensler while restructuring the SEC due to “a long series of abuses,” as alleged by the two Representatives.
According to the Representatives, the Act would alter the Commission to include an additional sixth commissioner while creating an Executive Director who would oversee the agency’s day-to-day operations.
All rulemaking, enforcement, and investigation authority would remain with the commissioners, who are subject to staggered six-year terms.
The Act would also create a new environment where a single political party would never hold more than three commissioner seats at any given time.
🚨I’m calling to restructure the @SECGov and the removal of Chair @GaryGensler.
Watch my closing remarks from today’s hearing where I lay out the abuse of power and failure to protect investors that has occurred. pic.twitter.com/SNXio9Zbej
— Warren Davidson 🇺🇸 (@WarrenDavidson) April 18, 2023
Representative Emmer said investors and industry need clear oversight and not “political gamesmanship. He described Chair Gensler as “reckless” in his leadership of the Commission
“U.S. capital markets must be protected from a tyrannical Chairman, including the current one,” said Davidson. “That’s why I’m introducing legislation to fix the ongoing abuse of power and ensure protection that is in the best interest of the market for years to come. It’s time for real reform and to fire Gary Gensler as Chair of the SEC.”
While there is significant frustration on Capitol Hill with Chair Gensler’s leadership from both parties, chances are slim that the legislation would make it out of the House.
The actual legislation was not available at the time of this writing.
