In a recent development, two House Republicans, Representative Warren Davidson of Ohio and House Majority Whip Tom Emmer of Minnesota have jointly introduced the SEC Stabilization Act. This bill aims to restructure the Securities and Exchange Commission (SEC) and remove Chairman Gary Gensler from his post, citing a “long series of abuses” that they claim have taken place under his leadership.
Representative Davidson expressed concern over what he perceives as the need to protect U.S. capital markets from a “tyrannical Chairman,” including the current one. He emphasized the urgency to address the ongoing abuse of power and ensure long-term market protection through real reform, specifically by terminating Gary Gensler’s position as SEC Chair.
🚨 NEWS – Today I filed the SEC Stabilization Act to restructure the @SECGov and #FireGaryGensler.
U.S. capital markets must be protected from a tyrannical Chairman, including the current one. It’s time for real reform and to fire @GaryGensler as Chair of the SEC. Statement ⬇️ pic.twitter.com/0VUHxUAhtB
— Warren Davidson 🇺🇸 (@WarrenDavidson) June 12, 2023
Echoing these sentiments, Representative Emmer emphasized the importance of clear and consistent oversight for American investors and industry. He criticized what he referred to as “political gamesmanship” at the SEC and stressed the need for common-sense changes to prioritize investor protection rather than the personal whims of the Chair.
“American investors and industry deserve clear and consistent oversight, not political gamesmanship,” Emmer said in the release. “The SEC Stabilization Act will make common-sense changes to ensure that the SEC’s priorities are with the investors they are charged to protect and not the whims of its reckless Chair.”
The SEC Stabilization Act, introduced by Davidson and Emmer, outlines several key proposals. It seeks to remove Chairman Gensler from his position and restructure the commission to decentralize power from the chair, add a sixth commissioner, and create an executive director role for daily operations oversight. Commissioners would retain rulemaking, investigative, and enforcement authority, with staggered six-year terms.
Notably, the bill also aims to prevent any political party from controlling more than three seats on the commission, incorporating a structure similar to that of the Federal Elections Commission (FEC). This provision seeks to promote balanced decision-making and prevent undue political influence within the SEC.
The SEC declined to provide comment on the proposed legislation, but the introduction of the bill comes on the heels of Chairman Gensler’s recent appearance before a House Appropriations Subcommittee. During the hearing, Gensler faced questioning from Representative Byron Donalds of Florida regarding his alleged involvement in facilitating payments for the controversial Steele dossier during his time as the chief financial officer of Hillary Clinton’s 2016 presidential campaign.
In response to the inquiry, Gensler expressed his lack of awareness of the matter, asserting that it was not something he had been involved in.
As this proposed legislation makes its way through the legislative process, it has already generated considerable attention and discussion. Republicans are urging their colleagues to support the SEC Stabilization Act to address what they perceive as Chairman Gensler’s abuses and promote investor protection without undue political influence.
