In a recent development in the U.S. Congress, Representative Warren Davidson, a noted advocate of cryptocurrencies, proposed a bill aiming for an overhaul of the U.S. Securities and Exchange Commission (SEC). The bill seeks to remove current Chair Gary Gensler and distribute authority between the Chairman and Commissioners.
Pushing for Change in the SEC
Co-authored with Rep. Tom Emmer, the proposed legislation was introduced on June 12, marking a significant move in reshaping the SEC’s structure. Davidson has referred to Gensler as a “tyrannical chairman,” necessitating intervention by Congress to curtail his influence. In addition to seeking Gensler’s removal, the bill intends to increase the number of SEC Commissioners by one.
Davidson believes that these changes will bear positive outcomes for the market in the long run.
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Mixed Reactions to the Proposed Legislation
John Deaton, a lawyer representing XRP holders in the ongoing SEC vs Ripple lawsuit, expressed skepticism about the bill’s chance of passage in Congress. However, Deaton, a known supporter of cryptocurrencies, still contends that Gensler’s “days are limited,” irrespective of the bill’s fate. According to Deaton, Gensler remains committed to maintaining the status quo and preserving incumbent banks’ power.
Crypto Community Weighs In
Given the SEC’s recent intensified scrutiny of the crypto industry, the proposed bill has captured the attention of many within the crypto community. The strict regulatory stance adopted by Gensler has been openly challenged by Davidson and Emmer. As early as April, Davidson signaled his intention to introduce legislation calling for Gensler’s removal.
This announcement followed Davidson’s query to Gensler regarding his position on whether XRP qualifies as a security. Gensler has consistently declined to categorize XRP as a security, citing an ongoing legal dispute over its classification.
Despite many in the crypto community holding out hope for the bill’s adoption, Deaton remains doubtful. Although he acknowledges the bill’s merits, he believes it is unlikely to be enacted into law.
