SEC Chair Gary Gensler Faces Law-Makers Ire
By Laxmikant Khanvilkar
Securities Exchange Commission (SEC) Chairman Gary Gensler will be forced to answer tough question for his biased views on cryptocurrencies or virtual digital assets (VDA). He facing ire from the law-maker as well as colleagues for crypto overreach.
Warren Davidson, the U.S. congressman Twitted about introducing legislation to have SEC boss Gary Gensler removed from his role.
Reacting to Coinbase’s legal chief, Paul Grewal, the crypto-friendly congressman, on April 15th, announced his intention to have Gensler removed from his role after the SEC’s latest announcement about revisiting the proposed redefinition of an “exchange.”
“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 ,” Davidson tweeted.
SEC is planning to bring amendments in the interest of investors and markets by bringing certain brokers under additional regulatory scrutiny as well as “modernizing” rules that define an exchange.
Similar amendments were proposed in January 2022. At the time, crypto advocacy groups suggested it was an overreach of the SEC’s authority that could jeopardize participation in the space.
SEC commissioner Hester Peirce-known as “Crypto Mom” for her pro-crypto positions-criticized the new proposed rule amendments in an April 14 statement, declaring “stagnation, centralization, expatriation, and extinction are the watchwords” of the latest move by the SEC.
Gensler has been very vocal about getting tough on crypto. On Friday, Gary revealed he’s not leaving out the industry’s most complex space: DeFi.
SEC said last Friday that it would revisit plans to change the definition of what is considered an exchange. This would include DeFi or decentralized finance protocols like decentralized exchanges.
The announcement said that the body was revisiting a rule first proposed last year but will contain language to target the digital asset world, too.
Peirce further criticized the Commission’s plan as overly broad and said its “ambiguity undermines fundamental First Amendment protections.”
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