- Ohio representative Davidson seeks to replace Gensler with an executive director.
- The proposal comes at a time the commission is attempting to control DeFi.
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A US lawmaker intends to introduce a bill to remove the Securities and Exchange Commission (SEC) chair Gary Gensler from office following what crypto experts perceive as a series of crackdowns against the digital asset space.
Representative Warren Davidson from Ohio revealed the plans in a tweet while responding to Coinbase’s chief legal officer Paul Grewal after the regulator reined in decentralized finance platforms.
“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,” Davison said. He added that the former chairs of the commission were ineligible.
Gensler has imposed enforcement actions against various crypto platforms, including Kraken, Coinbase, Binance, and Tron, saying he was the ‘cop on the beat’ working to protect investor interest. The stance has rubbed the crypto community wrong, even causing division in the SEC itself.
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SEC’s ‘crypto mom’ opposes the commission
SEC commissioner Hester Peirce, commonly called ‘crypto mom’ for her pro-crypto stance, leads those opposing Gary Gensler’s crackdown on digital assets. On April 14, Pierce faulted a proposal to have digital assets exchanges, and decentralized exchanges register with the commission. In her view, the regulator stifles innovation and competition with vague regulations.
“Stagnation, centralization, expatriation, and extinction are the watchwords. Rather than embracing the promise of new technology as we have done in the past, we propose to embrace stagnation, force centralization, urge expatriation, and welcome the extinction of new technology. Accordingly, I dissent, the crypto mom wrote.
Peirce commented when the commission met to open public comment on a proposal to widen the definition of an exchange, maintaining that the definition equally applied to decentralized exchanges.
Many critics are pushing back against the Gensler-led agency with the view that it was overreaching by having DeFi, which ought to be fully decentralized under its purview. A DeFi platform allows users to lend, borrow, or save without third parties.
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