SEC chair Gary Gensler, also known as Wall Street’s top cop gained notoriety after pursuing 150 crypto-enforcement actions against some of the crypto industry’s biggest players.
Last week, the US regulator took on CZ-led Binance and Coinbase striking the two firms with multiple charges including violations of securities laws. In response to that, one legislator is now taking legal action.
Warren Davidson, U.S. representative for Ohio’s 8th congressional district [R-OH] has filed the SEC Stabilization Act to restructure the agency and oust the current chair.
In the announcement post, the former military officer called Gensler a “tyrannical chairman” that must be removed to protect the US capital market.
Majority Whip Tom Emmer who previously questioned Gary Gensler regarding the SEC’s regulation-by-enforcement agenda joined the introduction of Davidson’s SEC Stabilization Act.
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.
Davidson emphasized the requirement for “real reform and to remove Gary Gensler as Chair of the SEC.” And how the SEC’s tactics are pushing innovation outside of the US.
“Conversely, the call for a change in leadership has been consistent. Specifically because of the concern regarding how the SEC’s actions could affect the industry. Subsequently, this is pushing digital asset development away from the US,” he concluded.
The latest action comes after Gensler was charged with manipulating the markets by engaging in short sales of equities with a connection to cryptocurrencies, notably AMC Theatres and GameStop.
Gary Gensler Faces Market Manipulation Charges
As reported by TronWeekly, the allegations led by Citadel Securities and Citadel Market Maker accused the chairman of being implicit and carrying out the alleged transactions through the Vanguard Group and BlackRock, two reputed financial institutions.
After the unexpected revelations, calls for Gensler’s dismissal swiftly increased. Criticizing the top exec, the crypto community said he failed to shield small investors from dishonest practices in a Change.org petition.
According to the petitioners, the SEC chair’s oversight permitted Citadel’s two entities to engage in “naked short selling and dark pool abuse,” which damaged the confidence of regular investors.