Connect with us

Hi, what are you looking for?

[stock_market_widget type="ticker-quotes" template="chart" color="#5679FF" assets="MSFT,AAPL,NFLX,GOOG,TSLA,NFLX,AMZN" animation="true" display_currency_symbol="true" api="yf" speed="50" direction="left" pause="true"]

Crypto

Crypto Regulations Controversy: Rep. Davidson To Introduce Bill Firing SEC's Gensler

Crypto enthusiasts may have reason to celebrate as United States Rep. Warren Davidson announced plans to introduce legislation that could potentially lead to the removal of Gary Gensler, the chair of the Securities and Exchange Commission.  Davidson’s move comes as a response to what he perceives as Gensler’s overreach in the digital currency space, with

crypto-regulations-controversy:-rep.-davidson-to-introduce-bill-firing-sec's-gensler

Crypto enthusiasts may have reason to celebrate as United States Rep. Warren Davidson announced plans to introduce legislation that could potentially lead to the removal of Gary Gensler, the chair of the Securities and Exchange Commission. 

Davidson’s move comes as a response to what he perceives as Gensler’s overreach in the digital currency space, with the SEC’s proposed redefinition of an “exchange” drawing widespread criticism. 

As tensions mount between regulators and the bitcoin community, the fate of Gensler and the future of crypto regulation hangs in the balance.

U.S. Rep. Warren Davidson. Image: CoinCu News

Congressman Seeks To Hold SEC Accountable For Rule Changes

Gensler has come under fire for his proposal to redefine the term “exchange”. In a meeting held on April 14, Gensler defended the proposed amendments, stating that they could bring more brokers under regulatory scrutiny and “modernize” rules that define an exchange, which could ultimately benefit investors and markets.

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

However, Davidson took issue with Gensler’s proposal and took to Twitter to announce his intention to introduce legislation that would remove Gensler from his position. Davidson’s proposal suggests replacing Gensler’s position with an executive director who would report to the board, and explicitly stated that former SEC chairs would be ineligible for the role.

SEC Chair Gary Gensler. Image: Kevin Dietsch/Getty Images

SEC Regulatory Actions Draw Criticisms From Crypto Community

The SEC has been actively pursuing enforcement actions against several bitcoin exchanges and platforms for allegedly violating securities laws. However, some in the crypto community have accused the SEC of being overly aggressive and stifling innovation in the industry.

In response to the SEC’s actions, several prominent figures in the digital currency industry have spoken out against the agency, including SEC commissioner Hester Peirce, whom the community has called its “Crypto Mom.”

In addition to ironing this t-shirt (which republishes code from a comment letter), will I need to register as an exchange before wearing it? “It depends,” per the SEC’s latest release: https://t.co/mARz8FzNZD pic.twitter.com/xD7Lx2kJE6

— Hester Peirce (@HesterPeirce) April 14, 2023

Peirce: SEC Refuses To Adopt Regulations For New Tech

Peirce has voiced her concerns about the agency’s approach to regulating new technologies in the digital currency industry, accusing the SEC of expanding its regulatory reach without addressing real problems and refusing to adopt existing regulations to accommodate new technologies and business models.

Advertisement. Scroll to continue reading.

Peirce also criticized the SEC’s use of the “notice-and-comment rulemaking process” as a way to exert control over the industry. She argued that this process, which allows the public to comment on proposed regulations, has been used as a threat to dissuade companies from innovating in the space.

Crypto total market cap drops a few digits and now at $1.21 trillion on the daily chart at TradingView.com

According to the commissioner, the SEC’s lack of understanding of the crypto industry has led to ambiguity and confusion in its proposed rule changes. She suggested that the agency should have issued a concept release to gather feedback and better understand the industry before proposing new regulations. 

Peirce’s comments reflect a growing sentiment among some in the crypto community that the SEC is stifling innovation and hindering the growth of the industry.

-Featured image from Jeffrey Martin/Flickr.Com

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

You May Also Like

Mining

NAL spodumene concentrate production remains targeted for H1 2023 with revenue potential in Q3 2023. Credit: Piedmont Piedmont Lithium (Nasdaq: PLL; ASX: PLL) announced...

Stocks

SAN FRANCISCO (MarketWatch) — Among the companies whose shares are expected to see active trade in Thursday’s session are BlackBerry Ltd., Oracle Corp., and...

Tech

Over 90% of cybercrime activities that lead to financial fraud or identity theft start with an email impersonation, commonly known as phishing and spoofing....

Top Stories

Following a down year for the stock market, there is no shortage of recession predictions for 2023, especially as the Federal Reserve has signaled...

Advertisement