U.S. Representative Warren Davidson recently took to Twitter to announce that he is introducing a legislation that is likely to ”remove” the Chairman of the Securities and Exchange Commission. The role would be replaced with an Executive Director that reports to the Board. Davidson clarified that former Chairs of the SEC are “ineligible.” Specifically, the Representative added that the legislation is being introduced to ”correct” a “long series of abuses.”
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This means that current Chair Gary Gensler’s position could be in jeopardy. Davidson’s tweet comes on the heels of the SEC’s recent announcement pertaining to exchanges. In a meeting last week, Gensler said the amendments would go on to benefit investors and the market as a whole. This would be done by bringing certain brokers under additional regulatory scrutiny. Furthermore, Gensler added that the rules defining an exchange will be modernized. He said,
“This would account for the evolving nature and electronification of trading platforms in the last 25 years… Given how crypto trading platforms operate today, many of them currently are exchanges regardless of this reopening release we’re considering.”
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The bigger picture
Davidson tweeted about the new legislation proposed by quote-tweeting Coinbase’s Legal Chief, Paul Grewal, who lauded Hester Piece’s latest critical comments. In a recent statement, ‘Crypto Mom’ noted that the amendment proposal would foster “stagnation, centralization, expatriation, and extinction.” She said,
”Today’s Commission tells entrepreneurs trying to do new things in our markets to come in and register. 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.”
She added,
”Today’s Commission treats the notice-and-comment rulemaking process not as a conversation, but as a threat.”
People from the community went on to appreciate Davidson’s latest announcement. William Mougayar, Author of The Business Blockchain, tweeted that the U.S. Congress is the ”only body” that can possibly stop the SEC’s aggressive actions against the crypto industry.
It should be noted that for the legislation to be enforced, it will first have to be introduced and then be passed in the House. After that, it will have to go to the Senate for consideration before reaching the President’s table for the final signature.
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