Rep. Warren Davidson is set to introduce legislation to remove Gary Gensler from his position as Chairman of the U.S. Securities and Exchange Commission (SEC), following a recent announcement from the SEC about revisiting the definition of an “exchange.” Davidson, a pro-crypto congressman, shared his intentions on Twitter, stating that he plans to replace the Chairman role with an Executive Director who reports to the SEC board.
The SEC’s move to redefine “exchange” has been met with criticism from crypto advocacy groups and SEC Commissioner Hester Peirce, also known as “Crypto Mom” for her support of the industry. They argue that the proposed rule amendments could lead to stagnation, centralization, and a negative impact on new technologies in the market. Peirce also highlighted the SEC’s unwillingness to adapt existing regulations for emerging technologies and business models, accusing the regulator of discouraging innovation.
As the SEC continues to pursue high-profile actions against crypto companies, critics argue that the regulator is overstepping its bounds, using enforcement actions to shape the law instead of establishing clear regulations. The proposed ousting of Chairman Gensler demonstrates the growing tension between the crypto community and regulatory authorities, as both sides seek a balance between innovation and investor protection.