US Congressman Proposes Removing Gary Gensler as SEC Chair

In recent months, the U.S. Securities and Exchange Commission (SEC) has come under increasing political pressure for its regulatory approach to the cryptocurrency industry.

The latest move against the SEC is a proposed bill by Ohio Representative Warren Davidson, which aims to oust SEC Chairman Gary Gensler and replace him with a director.

The proposed legislation comes amid growing concerns from crypto industry advocates about what they view as overreach and extrajudicial crackdowns by the SEC. Commissioner Hester Peirce, also known as “crypto mom,” has been particularly vocal in criticizing the agency’s war on crypto.

In response to SEC criticism, Congressman Davidson stated that he is introducing legislation “to remove the Chairman of the Securities and Exchange Commission and replace the role with an Executive Director that reports to the Board (where authority resides).”

Gary Gensler has vowed to crack down on the entire crypto industry, viewing himself as the “cop on the beat.” However, his approach has faced mounting opposition from a growing number of U.S. politicians, who argue that the SEC’s regulatory efforts are stifling innovation and driving the industry offshore.

In February 2022, Congressman Davidson introduced a bill seeking to prevent any agency from inhibiting cryptocurrency usage or transactions through personal and private wallets.

In March this year, Representatives Patrick McHenry and Ritchie Torres revived a bipartisan bill aimed at preventing an innovation exodus in the wake of the crypto crackdown.

The SEC’s latest move against the crypto industry involves decentralized finance (DeFi) platforms. On April 14, the SEC announced plans to modify a proposed rule stating explicitly that DeFi platforms must register with the regulator.

Gary Gensler has argued that many crypto trading and DeFi platforms already fall under the current definition of an exchange and must comply with securities laws and register.