US House Representative: Legislation to impeach SEC Chairman; SEC Commissioner: Committee's rule-making viewed as a threat

In recent years, American cryptocurrency industry insiders have repeatedly criticized SEC Chairman Gary Gensler for focusing on enforcement rather than regulation, making it difficult for the industry to continue developing within a clear framework. This phenomenon has even prompted internal SEC members to speak out and criticize, with US Congressman Warren Davidson announcing plans to legislate the removal of Gary for abusing his authority.

US House Representative Seeks to Impeach SEC Chairman Gary Gensler

Coinbase's Chief Legal Officer, Paul Grewal, reposted a statement from SEC Commissioner Hester Peirce yesterday, highlighting the current issues at the SEC in just over 60 words.

"The current SEC Commission tells companies that they need to come register in our markets when they do new things. But when companies find they can't, the Commission rejects the possibility of adjusting the regulatory framework to help companies register, instead taking enforcement actions against them rather than rewarding their integrity. The current Commission treats the rulemaking process as a threat rather than a means of communication," Hester Peirce stated.

In response, US House Representative Warren Davidson stated that in order to prevent a series of abuses of power by SEC Chairman Gary Gensler, he plans to legislatively impeach him and replace him with an Executive Director who reports to the board, as the former SEC Chairman is deemed ineligible.

Yep. To correct a long series of abuses, I am introducing legislation that removes the Chairman of the Securities and Exchange Commission and replaces the role with an Executive Director that reports to the Board (where authority resides). Former Chairs of the SEC are ineligible. https://t.co/VBnkgt8bhM

— Warren Davidson 🇺🇸 (@WarrenDavidson) April 16, 2023

SEC Chairman Gary Gensler Reiterates: No Need to Set Regulations for Cryptocurrency

According to previous reports, Gary, during an Institutional Investors Committee meeting in early April, bluntly stated that there is no need to set regulations for cryptocurrency, as the crypto market is not incompatible with securities laws.

Furthermore, Gary also warned crypto firms not to try to evade regulations and securities laws, as the SEC will continue to play an enforcement role.