Two United States lawmakers, Warren Davidson and Tom Emmer, introduced a new bill on June 12, named “the SEC Stabilization Act,” with the aim of restructuring the United States Securities and Exchange Commission and removing its current chairman, Gary Gensler. The lawmakers stated that the bill would change the current structure of the financial regulator, ensuring that its priorities protect the interests of investors. Davidson added that it was time for real reform and to fire Gary Gensler as Chair of the SEC.
Changes to Ensure Clarity and Consistency in the SEC
Congressman Emmer added that American investors and industry deserved clear and consistent oversight, not political gamesmanship. The SEC Stabilization Act would 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. The new bill adds a new commissioner to the financial agency and introduces the office of an Executive Director tasked with overseeing the Commission’s daily operations. However, all rulemaking, enforcement, and investigation authority remain with the commissioners, subject to staggered six-year terms.
Stabilizing the SEC with a Similar Structure to the Federal Election Commission
The ensuing stability would also force commissioners to work together prior to approving any significant actions under the SEC’s purview. This would implement a similar structure that is currently in place at the Federal Election Commission. The SEC Stabilization Act would also prevent a single political party from holding more than three commissioner seats, protecting the U.S. capital markets from destabilizing future political agendas.
Gensler Under Fire from Crypto Stakeholders
Under Gensler’s leadership, the SEC has labeled over 60 cryptocurrencies securities and filed legal actions against major crypto firms like Coinbase and Binance. Several crypto stakeholders have heavily criticized the Commission’s regulation-by-enforcement approach to the industry. The proposed restructuring of the SEC could address these concerns and ensure that the SEC’s priorities align with the interests of investors and the industry.
In summary, the SEC Stabilization Act aims to restructure the SEC and remove its current chairman to ensure that the regulator’s priorities protect the interests of investors. The bill proposes several changes, including adding a new commissioner and an Executive Director, with all rulemaking, enforcement, and investigation authority remaining with the commissioners, subject to staggered six-year terms. The proposed changes are designed to ensure clarity, consistency, and stability in the SEC, with a similar structure to the Federal Election Commission. The bill would also prevent a single political party from holding more than three commissioner seats, protecting the U.S. capital markets from destabilizing future political agendas.
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