Warren Davidson and US lawmakers file ‘SEC Stabilization Act’ to fire Gary Gensler

US lawmakers file ‘SEC Stabilization Act’ to fire Gary Gensler.

Davidson is clear in his intent: “US capital markets must be protected from tyrannical Chairman… It’s time for real reform and to fire Gary Gensler as Chair of the SEC.”

This call for a leadership change underscores concerns around how the SEC’s actions could impact the industry, possibly driving digital asset development away from the US. Will this spark reform, or ignite further conflict? The crypto world watches. 

This move follows recent SEC enforcement actions, which saw prominent crypto exchanges Coinbase and Binance facing charges for alleged US securities law violations.

Davidson declared his intention to introduce the bill earlier this year. He made that announcement in reply to a tweet by Coinbase legal chief Paul Grewal. Rep. Tom Emmer is the co-author of the bill. Emmer said, “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.”

According to Fox News, the bill would remove Gensler from office and redistribute power between the SEC chair and commissioners. It would also add a sixth commissioner to the agency, disallow any party from holding a majority on the commission and create an executive director position.

Although the lawmakers did not mention cryptocurrency in their statements, both Davidson and Emmer are known to be pro-crypto and critical of Gensler’s leadership at the SEC. Emmer has, for example, called Gensler a “bad faith regulator,” and Davidson is the vice chair of the House Financial Services Committee’s new Subcommittee on Digital Assets, Financial Technology and Inclusion.

An SEC spokesman declined to comment when approached by Cointelegraph. 

Davidson, in a pointed Twitter post, referred to Gensler as a “tyrannical chairman,” expressing his resolve to protect the markets from such leadership.

Dubbed the “SEC Stabilization Act,” Davidson’s bill aims not just at removing Gensler, but restructuring the SEC itself, potentially reshaping its organizational framework.