U.S. Security and Exchange Commission (SEC) Chairman Gary Gensler isn’t making many friends these days. In addition to receiving backlash from the entire crypto industry for his enforcement-first approach, some U.S. lawmakers are also taking action against him. ⚔️
United States Rep. Warren Davidson and House Majority Whip Tom Emmer introduced the “SEC Stabilization Act” to the House of Representatives today. They claim that U.S. capital markets must be protected from a tyrannical Chairman and that this legislation would fix the ongoing abuse of power and ensure protection in the markets’ best interest. 🛡️
The bill’s main suggestion is to remove the SEC chair position and replace it with an “executive director” that would oversee its operations. It also proposes adding a sixth SEC commissioner. Needless to say, the two lawmakers did not mince words about how they felt about Gensler’s approach to leading the SEC. ❌
Meanwhile, former SEC Chief John Reed Stark issued a warning on Twitter, saying, “Get out of crypto platforms now, I can’t say it any plainer…”
Get out of crypto platforms now, I can't say it any plainer. Having worked as an attorney in the SEC Enforcement Division for almost 20 years (including 11 years as Chief of the SEC Office of Internet Enforcement), I believe that we now know for certain that crypto trading…
— John Reed Stark (@JohnReedStark) June 8, 2023
Despite the current environment, Coinbase CEO Brian Armstrong remains optimistic. He says the crypto exchange remains dedicated to the U.S., elaborating, “We’re here to stay. I created this company in the United States because I believe – it’s a big market – but also there’s rule of law, and there’s a willingness to generally do the right thing even if it takes a few iterations.
So we are going to continue to be in the U.S. We’re going to be the leader in the U.S. The U.S. is going to get the right outcome, whether it’s through the courts, Congress, or the CFTC (Commodities Futures Trading Commission). Something is going to come to fruition. Maybe the 2024 elections will change this.” 👍
However, he believes the clash between the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC) is unproductive. Since both regulators have not been able to figure out clear regulations for the industry, Congress will need to step in and draft legislation to unblock the country’s crypto troubles. 📝
We’ll have to wait and see how this develops, as the legality of this move is still unclear. But what’s clear is that Gensler’s war continues to expand across several fronts. This time the shots are coming from his own side. Some might even call it…unfriendly fire. 😬