In a bold move to restore accountability and protect American investors, U.S. Congressman Warren Davidson and House Majority Whip Tom Emmer have unveiled an ambitious piece of legislation aimed at reshaping the Securities and Exchange Commission (SEC).
On June 12th, U.S. Congressman Warren Davidson and House Majority Whip Tom Emmer announced the introduction of the "SEC Stabilization Act".
The SEC Stabilization Act promises to "restructure the Securities and Exchange Commission and remove Gary Gensler as Chair of the SEC".
If passed, the proposed legislation will dismantle the Chairman position, and create a new role called the Executive Director, which will only manage the day-to-day operations of the SEC.
All rulemaking, enforcement, and investigation authority within the SEC will now reside with a council of six Commissioners, who will serve six-year terms each.
The two major American political parties, Democrats and Republicans, will be limited to a maximum of three Commissioners at any given time. This measure will protect the SEC from having a political agenda.
“American investors and industry deserve clear and consistent oversight, not political gamesmanship. The SEC Stabilization Act will make common-sense changes to ensure that the SEC’s priorities are with the investors they are charged to protect and not the whims of its reckless Chair. Thank you, Representative Davidson, for leading this important effort to restore sanity at the SEC.” - Tom Emmer, U.S. Representative and House Majority Whip
Congressman Warren Davidson took to Twitter to share a video highlighting the many failures and abuse that transpired under Gary Gensler and the SEC.
“U.S. capital markets must be protected from a tyrannical Chairman, including the current one. 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.” - Warren Davidson, U.S. Representative
The SEC Stabilization Act argues that there is a fundamental flaw in the current hierarchy structure of the SEC.
At the top of the SEC, you are supposed to have a council of five Commissioners, with one serving as a Chairman.
However, the way the SEC's power dynamics work out, the other four Commissioners are effectively powerless.
You even had Commissioner Hester Peirce calling out the SEC's policy judgments with her own Press Release in April, and nothing ever came of it.
This just shows how powerless these other Commissioners are, in comparison to the Chairman.
What are your thoughts on this news?
Do you think this bill will actually create a fairer SEC?
Will this lead to greater clarity on crypto regulation?
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Regulate the regulators... "quis custodiet ipsos custodes" as Juvenal said. And then the next tier of regulators will have to be regulated too. Just effing let us do what we want to with our "pretend currencies that don't affect the economy anyway"!? Or maybe not. I simply don't know.
Not being an American, and not keeping up much with politics at all, I miss the tags I usually see after a name - REP/DEM - which tells me at least what side of the big divide someone represents, even if that sometimes can get muddled too.
No, I don't rememember who said that crypto is "pretend currencies that don't affect the economy anyway" or even if that is the correct wording. But anyone who thinks so can just stay away from trying to regulate it, please. It's not needed, right, it's just pretend? Go regulate the pretend money in the Monopoly game instead - I've seen kids use what they won in one game to trade for candy from their parents and siblings, giving them the edge in the next game! Horrible!
The congressman leading the charge on this are Republicans. It definitely varies when it comes to each individual politician, but from what I see it does seem that the Republican party is generally more crypto-friendly.
To provide some context, currently President Biden (Dem) is trying to clamp down on crypto and any supposed "loopholes", while another Democrat named Elizabeth Warren is basically on the warpath against crypto and is one of Gary Gensler's biggest supporters.
I personally think the Democrats attacking crypto is going to lose them support from the American youth and crypto enthusiasts. Which could help crypto- if crypto-friendly politicians take their place in the next election.
Thanks :) I agree that the Democrats will probably lose some votes on this. Or perhaps, as you say, anti-crypto Democrats will be replaced by pro-crypto Democrats!