Few personal details are more hotly debated in the crypto industry than Gary Gensler. The head of the US Securities and Exchange Commission is taking tougher action against the young sector. His authority published threats of lawsuits (so-called “Wells Notices”) against several companies, including US giant Coinbase. Crypto exchange Kraken was accused of trading unregistered securities. It had to shut down its staking service for US customers and pay a 30 million USD fine to avoid a lawsuit. In addition, the authority is now putting out feelers in the direction of decentralized exchanges. And then the legal dispute between Ripple and the SEC is still simmering in the background, the outcome of which is likely to have far-reaching regulatory consequences for the US industry.
The regulator’s move is causing resentment, not only in the crypto scene, but also in the ranks of Republicans. Gensler faces her questions in the House Finance Committee tomorrow, April 18. The pressure is high. Not only are the MPs demanding answers about the now legendary downfall of FTX, it is also about the authority’s general push against the crypto sector in the USA.
Republicans want to fire Gary Gensler
If Warren Davidson has his way, however, Gensler’s offensive against the industry should soon come to an end. Republican member of the House of Representatives quit days before the committee began, he announced plans to introduce legislation that would reform the SEC. The proposal would replace the role of chairman (in this case, Gary Gensler) with an elected executive director reporting directly to the SEC’s board of directors. This would strengthen the powers of the current five-member body and relieve Gensler of his office.
Exactly how the future function of the council will look like can only be guessed at. Davidson has not yet submitted a concrete draft. One thing is certain: Former SEC chairmen should not be allowed to run again for an election. With the move, he wants to correct “a long series of abuses,” the Republican continues.
Minority pro-crypto faction of the SEC
It remains unclear, however, how a possible reform of the administrative structure can positively influence the future position of the SEC on cryptocurrencies. The current Board of Directors consists of five members (Chairman plus four other Commissioners). Together they determine the course of the supervisory authority. A simple majority is usually sufficient for decision-making.
The pro-crypto faction is outnumbered at the SEC with “Crypto Mom” Hester Pierce and fellow Republican Mark Uyed. Both recently loudly criticized Gary Gensler for his plans to extend the term “exchange” to decentralized trading platforms such as Uniswap. However, the SEC boss was unimpressed.
