Rep. Warren Davidson, R-Ohio, and House Majority Whip Tom Emmer, R-Minn., introduced the SEC Stabilization Act that would restructure the SEC and remove Chairman Gary Gensler from his post.
The GOP lawmakers point to what they say is Gensler’s "long series of abuses that have been permitted under the current SEC structure."
"U.S. capital markets must be protected from a tyrannical Chairman, including the current one," Davidson said.
"That’s why I’m introducing legislation to fix the ongoing abuse of power and ensure protection that is in the best interest of the market for years to come," he added. "It’s time for real reform and to fire Gary Gensler as Chair of the SEC."
"American investors and industry deserve clear and consistent oversight, not political gamesmanship," Emmer said in the same release. "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."
"Thank you, Representative Davidson, for leading this important effort to restore sanity at the SEC," Emmer went on to add.
The bill proposed by Davidson and Emmer aims to bring about significant changes within the SEC. It seeks to oust Gensler from his current position as the chair and reorganize the commission by redistributing power among the commissioners. To accomplish that, the bill proposes the addition of a sixth commissioner to the SEC and the establishment of an executive director role responsible for overseeing day-to-day operations, Fox News reported.
Under the proposed bill, commissioners would retain their authority in rulemaking, investigations, and enforcement, while also being subjected to staggered six-year terms.
Cointelegraph noted in a report on the legislation: "Although the lawmakers did not mention cryptocurrency in their statements, both Davidson and Emmer are known to be pro-crypto and critical of Gensler’s leadership at the SEC. Emmer has, for example, called Gensler a 'bad faith regulator,' and Davidson is the vice chair of the House Financial Services Committee’s new Subcommittee on Digital Assets, Financial Technology and Inclusion."
Pitted against wider adoption of cryptocurrencies is the implementation of a Central Bank Digital Currency, or CBDC, which the SEC would likely play a role in governing.
One of the main dangers of CBDC is the risk of cyber attacks. As CBDC is digital, it is vulnerable to hacking and cyber attacks, which could result in the theft of funds and disruption of the financial system. Central banks will need to invest heavily in cybersecurity measures to prevent such attacks, but there is no guarantee that these measures will be foolproof.
Another concern is the impact on the banking system. If CBDC is widely adopted, it could reduce the role of banks in the financial system, as consumers could hold digital money directly with the central bank. This could lead to a decline in the profitability of banks and potentially destabilize the financial system.
Moreover, CBDC could lead to privacy concerns. As transactions with CBDC would be recorded on a central database, there is a risk that personal information could be leaked or misused. This could have serious implications for individuals, as well as for businesses and governments.
Finally, CBDC could have geopolitical implications. If a country's CBDC becomes widely adopted, it could challenge the dominance of the US dollar as the world's reserve currency, having far-reaching damaging effects on the global economy.
Republicans are legitimately trying to prevent the tyranny that digital currencies would bring about. The effort should be supported.