Political pushback is mounting against the U.S. Securities and Exchange Commission (SEC), its Chairman Gary Gensler, and its war on crypto. The latest to take action against the overreaching regulatory body is Congressman Warren Davidson.
On April 16, Ohio Representative Warren Davidson said that he was introducing new legislation. The aim of the proposed bill is to oust the Chairman of the SEC and replace him with a director.
This also follows a series of what crypto industry advocates view as extrajudicial crackdowns on the sector.
The Congressman responded to more SEC criticism from agency Commissioner Hester Peirce.
“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).”
Gensler views himself as an enforcer, repeatedly claiming that he is the “cop on the beat.” As such, he has vowed to crack down on the entire crypto industry with several sweeping enforcement actions this year.
Opposing the SEC
SEC Commissioner Peirce, also known as “crypto mom,” has been vocal about the agency’s war on crypto.
On April 14, she issued a statement on “Amending the Definition of Exchange.” She took a swipe at the SEC and Chairman Gary Gensler, stating:
“Rather than embracing the promise of new technology as we have done in the past, here we propose to embrace stagnation, force centralization, urge expatriation, and welcome extinction of new technology.”
“Accordingly, I dissent,” added the pro-technology and innovation advocate.
Moreover, Congressman Davidson is one of a growing number of U.S. politicians that are in agreement.
In February 2022, he introduced a bill seeking to prevent any agency from inhibiting cryptocurrency usage or transactions through personal and private wallets.
In March this year, Representatives Patrick McHenry and Ritchie Torres revived a bipartisan bill to thwart an innovation exodus in the wake of the crypto crackdown.
DeFi Crackdown
The regulatory agency has remained relentless in its war on crypto this year. Its latest salvo against the sector also painted a target on the decentralized finance (DeFi) ecosystem.
On April 14, the SEC announced plans to modify a proposed rule stating explicitly that DeFi platforms must register with the regulator.
Gary Gensler reiterated that many crypto trading and DeFi platforms already fall under the current definition of an exchange. In his opinion, they must comply with securities laws and register.
However, no crypto asset has been officially classified as a security in the U.S. yet. That is a job for Congress, not Gensler, and that is the argument a growing number of lawmakers are putting forward.
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