House GOP whip reiterates support for bill to oust SEC chair Gary Gensler

U.S. Securities and Exchange Commission (SEC) chair Gary Gensler continues to draw the ire of Republican lawmakers who support cryptocurrency.

Tom Emmer, the majority whip in the U.S. House of Representatives, and Ohio Congressman Warren Davidson, are sponsoring a legislative effort aimed at removing Gensler from leadership.

The legislation seemingly addresses worries about the commission’s priorities and Gensler’s scrutiny of crypto-related companies.

In June, Emmer announced support for Davidson’s SEC Stabilization Act—a significant move toward restructuring the SEC. The bill aims to remove Gensler from office, citing concerns about his leadership and the SEC’s structure.

Emmer and Davidson say they are acting to support American investors and efficient capital market functioning.

The SEC Stabilization Act introduces key provisions to address these concerns: it proposes an additional sixth commissioner and the creation of an Executive Director overseeing day-to-day operations.

The Act limits the discretion held by the SEC Chair, ensuring equal responsibility among the five commissioners for rulemaking, enforcement, and investigation. The legislation maintains the current six-year terms for commissioners with staggered appointments to ensure leadership continuity and independence.

The background of the SEC Stabilization Act stems from criticisms regarding Gensler’s leadership at the SEC. Critics argue that his tenure lacked clear oversight, focusing on political maneuvering rather than the interests of American investors and the industry. The bill aims to restore order at the SEC, protecting U.S. capital markets from the perceived autocratic rule of a single individual, including the current Chair.

Support for the SEC Stabilization Act is evident, with Emmer endorsing the bill.

Gensler, a seasoned professional with experience in academia, government, and finance, has emphasized dynamic regulation and investor protection during his SEC tenure, evident in his numerous speeches and public statements.