Gary Gensler soon no longer a threat?
Gary Gensler is chairman of the SEC and is considered to be anti-crypto. His agency has been attacking the crypto industry, especially over the past two months. If several US MPs have their way, the Democrat will no longer pose a threat to industry in the future. You want to depose him. Why is he about to be fired?
Gary Gensler soon no longer a threat?
CryptoQuorum has repeatedly reported on Gary Gensler and the US Securities and Exchange Commission he heads over the past few weeks. The SEC claims to regulate the crypto industry.
For a long time, little was done apart from the SEC’s lawsuit against Ripple, which was filed in December 2020. That finally changed in February 2023. The SEC decided on its own to target crypto companies . In a speech , Gensler explained that the young industry would no longer be given complete freedom. The aim of the new measures is consumer protection.
The crypto exchanges Kraken and Binance initially served as targets , which the SEC warned for providing staking services and a stablecoin. In the future, the authority could also be dangerous for smaller companies.
Meanwhile, there was resistance in the crypto scene. Many lawyers stated that the SEC did not have the necessary powers to enforce the desired measures.
Distrust of Gensler also arises in the legislature. Crypto-friendly politicians see the Democratic politician’s leadership style as harmful. That’s why MP Warren Davidson recently declared that he wanted to dismiss Gensler without further ado.
“To correct a long line of abuses, I am introducing legislation to sack the head of the Securities and Exchange Commission and replace it with a chief executive who must report to the board.” So Davidson.
As Reuters reports, the SEC is aiming to regulate the DeFi sector as well. Current laws would already apply to the decentralized market, Gensler explains. Exercising power over the Web3 is likely to prove difficult in practice. Previous sanctions against DeFi applications have proven to be ineffective.
SEC employees explain the dismissal of the SEC chief
Davidson’s comment references the statement made by SEC staffer Hester Pierce. She assessed Gensler’s policy as follows:
The SEC is drastically expanding its sphere of influence to solve problems that don’t even exist.
For Peirce, the behavior of the SEC is intolerable. Companies would be urged to register with the authority as soon as they develop a new business idea. However, the SEC also requires this from companies that are not subject to their area of responsibility. In addition, the company is not prepared to compromise with companies that cannot be registered with the SEC.
The SEC’s actions are currently vexatious. Peirce cites so-called Wells Notices as examples. These are warning letters that the SEC normally sends out to warn companies of potential wrongdoing. Usually, a common solution is found through contact.
According to Peirce, these letters are now being misappropriated and used as a threat by the SEC to punish unwelcome companies and to force anticipatory obedience.
It is still uncertain whether Gary Gensler will actually be fired and whether the restructuring desired by Davidson will take place. Gensler was elected chairman of the SEC in April 2021. Should Gensler complete his term of office, he will remain in office until 2026.
