In a surprising twist of events, members of the US House of Representatives are coming up with ways to get rid of Gary Gansler for the benefit of both the US and its cryptocurrency-related industry. However, it might be more complicated than it seems. On June 12, the Ohio representative, Warren Davidson, came forward with the SEC Stabilization Act, highlighting the intention of firing Gary Gensler.
“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.”
The legislation was also joined by House Majority Whip Tom Emmer. He added,
“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.”
Is it likely that Gary Gensler will be Removed?
Representative Davidson has made several allegations against Gary Gensler for misconduct and abuse of power, but it is still a fact that removing a President-appointed official is not an easy task. However, US Presidents might ask such officials to resign, but it is still unclear whether or not they have the power to terminate them.
A legal expert has claimed that forcing an SEC official to quit would require proper reasoning. According to a 2010 decision of the Supreme Court, it had come to light that commissioners could not be removed by the President unless there was a solid reason for doing so. The chair of the SEC was sworn into office back in 2021 and is expected to continue his tenure till 2026.
Gary Gensler has been responsible for disrupting the crypto industry and troubling many lawmakers in his tenure. Davidson originally proposed the anti-Gensler legislation back in April in response to a tweet from Paul Grewal, Coinbase’s Chief Legal Officer. However, now he is moving ahead through legislation.
How Would the SEC Stabilization Act Affect Cryptocurrencies?
If the SEC Stabilization Act is set into motion, it would greatly restructure the regulatory body to add a sixth member. The body currently has four commissioners and one chair, and the Act would also be responsible for shifting certain authority from the chair to the commissioners.
At the same time, the SEC Stabilization Act would also play a role in preventing a single party from holding more than three commissioner seats. Such a move would help in protecting the US capital markets from destabilizing upcoming political agendas. It will also limit the influence of any authoritative individual on the overall market.
The removal of Gary Gensler might offer relief for the crypto space and investors. Many in the crypto industry argue that the statements made by the SEC’s Chair are illogical and that there has been no proper clarity surrounding crypto regulation. Coinbase has voiced such a concern multiple times but met with an unfavorable response from the SEC.
The situation might change as a whole and cryptocurrencies would well be on their way toward recovery. The positive sentiment can grow within the market once Gensler is shown a way out. Plus, it would make things simpler for Binance, Coinbase, Ripple, and other firms battling lawsuits from the SEC.