The US Congress proposes to fire the head of the SEC

Member of the US House of Representatives Warren Davidson again called for the removal of Gary Gensler from the post of head SEC. The reason was the court verdict in favor of Grayscale on the conversion of the company’s GBTC in ETFs contrary to the position of the regulator.

In his statement, Davidson actually quoted the text of the court’s decision.

The politician added a hashtag to the post #FireGaryGensler.

This is the second consecutive lost case of the Commission against participants in the crypto industry. Ripple previously won a “partial victory” in a 2020 lawsuit in which the SEC accused a fintech company of distributing unregistered securities in the form of the platform’s native tokens.

Back in April 2023, Davidson proposed to fire the head of the department. Then he announced plans to introduce a corresponding bill. The reason for the initiative was Gensler’s intention to revise the definition of “exchange”, which caused a wave of criticism from representatives of the crypto industry.

On April 14, the head of the SEC said the proposed rule changes could benefit investors and markets by subjecting some brokers to additional scrutiny from regulators.

In January 2022, the Commission proposed similar amendments. At the time, industry advocacy organization Coin Center called the adjustments unconstitutional and beyond the authority of the SEC.

In mid-June, Davidson and a number of other congressmen introduced a bill to fire Gensler and restructure the agency.

Previously, the SEC filed a closed motion with the court in a case against Binance.

Former regulator lawyer John Reed Stark was surprised by the decision and noted that it is in the public interest to know and understand how the agency uses the funds received from taxes.