- Representative Warren Davidson will introduce legislation to fire SEC Chair Gary Gensler due to crypto overreach.
- Gensler’s proposed rule amendments and his alleged prioritization of Wall Street financial giants over the crypto industry have been subject to criticism.
SEC Chair Gary Gensler Accused of Favoring Wall Street over Crypto Industry Players
The SEC’s ongoing legal battle with Ripple Labs has garnered much attention in the crypto industry. Attorney John E. Deaton has launched the “Gensler Files,” accusing SEC Chair Gary Gensler of prioritizing the interests of Wall Street financial giants over those of the crypto industry.
According to Deaton, Gensler has had at least seven meetings with the Vanguard Group, which manages Gensler’s personal fortune of $100 million, but has not met with any significant crypto industry players. Deaton suggests that Gensler is pursuing the case against Ripple until he satisfies his Wall Street friends.
Reason Behind SEC’s Crackdown on Ripple
Deaton believes that Gensler’s actions are part of a broader policy of regulation by enforcement. He argues that Gensler is not providing clarity and guidance on crypto regulation, waiting for Wall Street players to be satisfied before labeling crypto safe enough for investors. Deaton claims that Wall Street giants like BlackRock are bullish on crypto but are waiting for regulatory clarity before investing.
Implications of the Ripple Case
The outcome of the Ripple case could set a precedent for future regulation of the crypto industry. If Ripple wins, it could usher in a new era of acceptance and growth for cryptocurrencies. If the SEC prevails, it could mean even tougher regulations for the sector in the future. The case is being closely watched by market players and could have a significant impact on the future of digital assets in the US.
SEC’s Latest Announcement Sparks Controversy
SEC Chair Gary Gensler is facing potential unemployment after Representative Warren Davidson announced his intention to introduce legislation to remove him from his role. Gensler’s latest announcement about revisiting the proposed redefinition of an “exchange” has been met with criticism from crypto advocacy groups who suggest it is an overreach of the SEC’s authority that could jeopardize participation in the space.
Yep. 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 (where authority resides). Former Chairs of the SEC are ineligible. https://t.co/VBnkgt8bhM
— Warren Davidson 🇺🇸 (@WarrenDavidson) April 16, 2023
SEC commissioner Hester Peirce, known as “Crypto Mom” for her pro-crypto positions, has criticized the proposed rule amendments, accusing the SEC of embracing stagnation and extinction of new technology instead of embracing the promise of new technology. According to Peirce, the SEC has been expanding its reach to solve problems that do not exist, and rather than making practical adjustments to help entrepreneurs register, it rewards their good faith with an enforcement action.
In addition to ironing this t-shirt (which republishes code from a comment letter), will I need to register as an exchange before wearing it? "It depends," per the SEC's latest release: https://t.co/mARz8FzNZD pic.twitter.com/xD7Lx2kJE6
— Hester Peirce (@HesterPeirce) April 14, 2023