Key points to remember
- Representatives Tom Emmer and Warren Davidson have proposed a bill that would fire Chairman Gensler and add more commissioners.
- This bill will also change how the SEC works and who holds the most power, following the establishment of the Federal Election Commission.
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In order to “restore sanity” in the United States Securities and Exchange Commission and remove its current chairman, Gary Gensler, Representative Warren Davidson (OH-08) and House Majority Whip Tom Emmer (MN-06) propose a bill on June 12 titled “The SEC Stabilization Act.” This bill seeks to address what they considered a “long series of abuses” that have gone unchecked under the current SEC framework:
US capital markets must be protected from a tyrannical president, including the current one. It’s time for real reform and to shoot @GaryGensler as Chairman of the SEC. Declaration ⬇️ pic.twitter.com/0VUHxUAhtB
— Warren Davidson 🇺🇸 (@WarrenDavidson) June 12, 2023
The legislation came after a tumultuous time at the SEC under Gensler, who Davidson and Emmer said left other “effectively redundant commissioner positions.” This allowed the role of president to hold too much discretion and power, according to Emmer’s press release:
“US capital markets must be protected from a tyrannical president, including the current one.
The “SEC Stabilization Act” aims to adjust the balance of power within the commission. It proposes the addition of a sixth commissioner and the creation of an executive director position to oversee the day-to-day operations of the agency. Under this structure, regulatory, enforcement and investigative authority would remain with the commissioners, who serve a six-year term.
To protect US financial markets from potential instability caused by a dominant political agenda, the bill seeks to limit the number of commissioners from the same political party to three at any one time. Commissioners will need to work together to discuss and decide unanimously on any major actions, such as:
“American investors and industry deserve clear and consistent oversight, not political game.”
The proposed restructuring of the SEC would result in an organizational setup similar to that of the Federal Election Commission and is seen as a corrective measure to impeach Chairman Gensler. However, the future of the legislation is uncertain, as it will need to gain traction in both houses of Congress and receive presidential approval to become law.