Bittrex was charged with running unregistered securities. Meanwhile, some in Congress want SEC chairman Gary Gensler fired due to his poor performance. After SEC and crypto community criticism, a US legislator revealed intentions to submit legislation to oust Gensler as SEC Chair.
House Republicans have criticized Gensler’s bitcoin platform regulation. He said these sites must follow rules. Some say “regulation by enforcement” is unsustainable.
Gary Gensler Resigned or Fired?
Warren Davidson is to submit legislation to remove Gary Gensler from his job. Warren Davidson (R-Ohio) proposed replacing Gary with an SEC Council-reporting Executive Director. Davidson believes SEC chairman Gary Gensler is unsuitable for the lesser role.
Gensler may still take other posts if the law passes, but he cannot head the Commission. After the November 2022 FTX crash, Davidson accused Gensler and the SEC of selective enforcement. In October 2022, Davidson slammed the SEC for fining Kim Kardashian for bitcoin marketing.
Davidson cautioned that the agency’s “incoherent” and “inconsistent” enforcement tactics might drive crypto innovation abroad. In February 2023, Davidson slammed the SEC for prosecuting Kraken over staking services, forcing the exchange to discontinue selling staking in the U.S.
Hester Peirce and Mark Uyeda, two of the SEC’s five commissioners, often disagree with the agency’s tough crypto policy, notably for the aforementioned reasons.
Davidson and his backers want legislation to protect Bitcoin innovation and avoid SEC abuse. The idea has been attacked for undermining the SEC and investor safeguards.
The crypto sector has called for Gensler’s resignation, and some expect him to quit this year. Ripple supporters, who want the SEC vs. Ripple dispute resolved, agree.
Gary Gensler: Testimony
House Republicans slammed SEC Chairman Gary Gensler during a House Financial Services Committee meeting. Gensler’s stringent bitcoin trading platform regulations were challenged. Gary insisted that these platforms follow U.S. securities rules before his department punished them.
Republicans said SEC disclosure requirements are unsuitable for decentralized digital currency exchanges. Digital platforms will go abroad to dodge U.S. authorities without crypto-specific laws. Gensler disagreed that bitcoin trading platforms don’t understand securities regulations.
Gensler said that U.S. crypto exchanges must comply with the regulatory framework throughout the hearing, showing little compassion for their concerns.
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