SEC Chairman Faces Backlash over Cryptocurrency Industry Regulation
There is a growing movement against the U.S. Securities and Exchange Commission (SEC) and its Chairman, Gary Gensler, 's regulatory actions toward the cryptocurrency industry.
Congressman Warren Davidson, a representative from Ohio, leads this pushback.
On April 16, 2023, Davidson announced that he would introduce new legislation aimed at removing the Chairman of the SEC and replacing the position with a director who would report to the Board. According to Davidson, this move is necessary to correct a series of abuses and restore the authority to where it rightfully belongs.
Davidson is not alone in his criticism of the SEC’s regulatory actions.
SEC Commissioner Hester Peirce, also known as “crypto mom,” has been vocal about her concerns regarding the agency’s war on crypto. In a statement on “Amending the Definition of Exchange” issued on April 14, 2023, Peirce criticized the SEC and Chairman Gary Gensler for their approach, which she says embraces stagnation and forces centralization.
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
Critics in the cryptocurrency industry have spoken out against the SEC’s recent attention to decentralized finance (DeFi) platforms. On April 14, 2023, the commission announced its intention to amend a proposed regulation mandating DeFi platforms to register with the regulatory body. Experts in the field worry that this modification could impede progress and hinder growth in the industry.
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Davidson’s latest action to introduce new legislation has received support from other U.S. politicians who believe that the SEC’s regulatory actions towards the crypto industry are too harsh. In February 2022, he proposed a bill to prevent agencies from inhibiting cryptocurrency usage or transactions through personal wallets.
In March 2023, Representatives Patrick McHenry and Ritchie Torres brought back a bipartisan bill to prevent an exodus of innovation following the crypto crackdown.
Even though Gary Gensler has promised to enforce sweeping actions against the entire crypto industry this year, no crypto assets have been officially categorized as securities in the United States thus far. Many lawmakers argue that it is Congress’s duty, not Gensler’s, to perform this task.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
