U.S. Lawmaker Proposes Bill to Oust Gensler
Rep. Warren Davidson has urged Congress to pass the SEC Stabilization Act to remove Gary Gensler as the chairman of the U.S. Securities and Exchange Commission (SEC). After the SEC filed a second lawsuit against Kraken for operating as an unregistered securities exchange, broker, dealer, and clearing agency, Davidson took to social media platform X on Tuesday to call for Gensler’s dismissal. The second lawsuit came just ten months after Kraken settled an initial charge by paying $30 million to the SEC.
Kraken’s co-founder, Jesse Powell, expressed his dismay with the SEC’s legal action, stating that he thought the organization’s concerns were settled in February. He believes that the SEC is using legal tactics to extort money from crypto companies, adding that a real fight would cost at least $100 million and would take valuable time.
In response to Powell’s comments, lawyer John Deaton criticized Gensler, saying that the SEC Chairman was aware that Kraken believed that its $30 million payment would bring peace. He pointed out that the SEC had been demanding settlements and accruing costs, such as the $150 million Ripple and Brad Garlinghouse had spent on legal fees so far.
Rep. Davidson, who introduced the SEC Stabilization Act in June, aims to prevent further harm to U.S. capital markets by removing Gensler from his role as chairman. Under the proposed bill, the chairman’s role would be eliminated, and a sixth commissioner would be added, ensuring no more than three commissioners from any single political party. The goal is to depoliticize the SEC and protect the U.S. capital markets from a potentially tyrannical chairman.
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Lawmaker Calls for SEC Chairman’s Ouster after Lawsuits Against Crypto Exchange Kraken
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