Republican Congressman Warren Davidson has introduced legislation to remove Securities and Exchange Commission (SEC) Chairman Gary Gensler from office.
The initiative was announced by Davidson via Twitter this weekend and is in response to the Securities and Exchange Commission’s proposed rules that would redefine the meaning of “exchange” while subjecting such entities to increased regulatory scrutiny.
Writing on Twitter, Davidson said Gensler needed to be removed “to correct a long line of abuses […].”
To replace the SEC chairman, the representative suggested appointing a new executive director who reports directly to the SEC board, noting that former SEC chairs would not be eligible for the role.
Davidson’s post linked to a tweet by Coinbase lawyer Paul Gruwal with a screenshot of SEC Commissioner Hester Pierce’s remarks .
According to the screenshot, Pearce, who is sometimes called the “mom of crypto” for her more cryptocurrency-friendly stance , criticized the SEC’s approach to cryptocurrency companies.
Among other things, Commissioner Pierce accused the SEC of actively going after crypto companies instead of helping them register as required:
“Today the Commission is telling entrepreneurs who are trying to do something new in our markets to come and register. When businesses find they can’t, the Commission rejects the possibility of making practical changes to our registration system to help businesses register, and instead rewards their good faith with enforcement.”
Commenting on a screenshot of Pierce’s remarks, crypto-focused lawyer James Murphy called it a “really troubling statement” that should give judges pause to consider crypto-related cases brought by the SEC.
Others agreed, with one user noting that regulations “always favor the established over the disruptive,” and another suggested the SEC likely kept the process “so complicated that applicants give up.”
“The US Congress is the only body that can possibly stop the SEC’s aggressive actions against the crypto industry,” said a third user.
