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US Congressman Warren Davidson Files ‘Stabilization Act’ to Fire Gary Gensler as SEC Chair

2 mins
Updated by Kyle Baird
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In Brief

  • U.S. Congressman files bill to dismiss SEC Chair Gary Gensler; gains support from other lawmakers.
  • The SEC Stabilization Act aims to restructure the SEC and prioritize investor protection.
  • Gensler's past statements on Ethereum and Litecoin not being securities have resurfaced amid recent SEC lawsuits against Binance and Coinbase.
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United States Congressman Warren Davidson has filed a new bill called the Stabilization Act. It seeks to restructure the SEC and remove SEC Chair Gary Gensler from his position.

United States Congressperson Warren Davidson has filed a new bill that calls for the dismissal of United States Securities and Exchange Commissioner (SEC) Chair Gary Gensler. The ‘Stabilization Act’ aims to restructure the SEC, protect the markets, and has garnered support from lawmakers.

Congressman Davison Explains the Stabilization Act

Davidson posted the update on June 12, stating that Gary Gensler was a “tyrannical Chairman.” He used the hashtag “FireGaryGensler” and said that the United States must be protected from Gensler.

The SEC lawsuit targets Binance.US, the U.S. entity of the exchange, distinct from Binance global. Check out our guide on Binance vs. Binance.US to learn more:

Binance vs. Binance.US: A Detailed Comparison

Davidson is also joined by the GOP’s majority whip Tom Emmer, who Davidson quoted as saying,

“American investors and industry deserve clear and consistent oversight, not political gamesmanship. The SEC Stabilization Act will make common-sense changes to ensure that the SEC’s priorities are with the investors they are charged to protect and not the whims of its reckless Chair.”

SEC's Proposed Structure per the Stabilization Act. Source: Twitter/Warren Davidson
SEC’s Proposed Structure. Source: Twitter/Warren Davidson

He also explained how the Stabilization Act would change the structure. Davidson said, “all rulemaking, enforcement, & investigations conducted by 6 commissioners.” There would also be a new Executive Director Role for day-to-day operations.

SEC Chair Once Said Ethereum and Litecoin Are ‘Not Securities’

The SEC’s decision to file lawsuits against Binance and Coinbase has engendered enormous resistance in the crypto community. Many old videos and positions of Gensler have been brought to the surface. One of them is the fact that he taught about blockchain technology at MIT.

Now, a video of Gensler telling hedge funds that Ethereum and Litecoin are not securities in 2019 has emerged. This will no doubt play a part in the discussions going forward while the crypto community seethes for what they see as hypocrisy.

Gensler a Supporter of Sen. Elizabeth Warren

The crypto community and some media outlets have also been bringing up the fact that Gensler has close ties with Senator Elizabeth Warren. The latter is famously anti-crypto, and the crypto community is wondering if this has had any influence on recent events.

Gensler’s support of Warren and his donation to her presidential bid in 2020 are well-known. She obviously will show no support for the Stabilization Act, but it will be interesting to see how many lawmakers consider the thought.

Top crypto platforms in the US | February 2024

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Rahul Nambiampurath
Rahul Nambiampurath's cryptocurrency journey first began in 2014 when he stumbled upon Satoshi's Bitcoin whitepaper. With a bachelor's degree in Commerce and an MBA in Finance from Sikkim Manipal University, he was among the few that first recognized the sheer untapped potential of decentralized technologies. Since then, he has helped DeFi platforms like Balancer and Sidus Heroes — a web3 metaverse — as well as CEXs like Bitso (Mexico's biggest) and Overbit to reach new heights with his...
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