U.S. Congressman Warren Davidson has called on Congress to pass his SEC Stabilization Act, seeking to fire U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler. This appeal comes after the SEC filed a second lawsuit against crypto exchange Kraken within 10 months. The regulatory action accuses Kraken of operating an unregistered securities exchange, broker, dealer, and clearing agency. Kraken had previously settled with the SEC for $30 million in February over its staking program. Davidson's bill aims to remove Gensler and add a sixth commissioner to ensure balanced representation.
In a significant development, U.S. Congressman Warren Davidson has urged Congress to pass his SEC Stabilization Act, a bill designed to terminate U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler from his position. This call for Gensler's removal comes in the wake of the SEC filing a second lawsuit against crypto exchange Kraken within a span of 10 months. The latest lawsuit accuses Kraken of operating as an unregistered securities exchange, broker, dealer, and clearing agency.
Congressman Davidson took to the social media platform X on Tuesday to emphasize the timeliness of passing his proposed legislation, stating, "Now would be a great time to pass my SEC Stabilization Act and fire Gary Gensler." The SEC's recent legal action against Kraken adds to the growing concerns and criticisms surrounding Gensler's leadership.
The SEC's first lawsuit against Kraken was filed in February, relating to the exchange's staking program. Kraken settled the initial charges by agreeing to pay $30 million. The latest regulatory action raises questions about the SEC's approach and its implications for the crypto industry.
Jesse Powell, co-founder and former CEO of Kraken, expressed frustration on social media, noting, "The USA’s top decelerator is back with another assault on America." Powell highlighted the SEC's return for a second lawsuit after a settlement was reached in February, emphasizing the financial burden and legal challenges faced by crypto companies dealing with regulatory scrutiny.
Rep. Davidson introduced the SEC Stabilization Act in June, aiming to remove Gary Gensler as SEC Chairman to safeguard U.S. capital markets from what he perceives as a "tyrannical chairman." The proposed bill outlines the removal of the chairman's role while adding a sixth commissioner to ensure a balanced representation with no more than three commissioners from any one political party. The bill reflects ongoing tensions between regulatory authorities and the crypto industry, raising broader questions about regulatory clarity and the approach taken by regulatory bodies in overseeing digital asset markets.
(Kevin Helms, Bitcoin News, 2023)