Will a Bitcoin spot ETF become SEC Chairman Gary Gensler’s last political legacy? If he is indeed impeached, the next SEC chairman may have an opposite stance and become a friend of cryptocurrency.
Summary:
On the last day of 2023, the “Stable Act” aimed at firing SEC Chairman Gary Gensler, who has been a crypto enemy, gained the support of two members of Congress and will enter the legislative process.
If this bill is formally passed in the future, Gary Gensler, the crypto enemy, will be officially impeached.
The lawmakers who promoted this legislative process are Warren Davidson and Tom Emmer, two “crypto-friendly members of Congress” who have been well-known in the crypto community for their “pro-crypto stance.”
Warren Davidson stated that 2024 would be the perfect time to dismiss SEC Chairman Gary Gensler. He also suggested that the SEC be held accountable for its corrupt behavior and end the Qualified Investor Rule that protects the financial elite.
Tom Emmer criticized Gensler’s regulation, stating that it “stifled innovation in the world’s largest economy.”
The impeachment of Gary Gensler, the crypto enemy, is undoubtedly a great joy for the crypto community. As the launch of the Bitcoin spot ETF is just around the corner, the ETF may become Gary Gensler’s last political legacy.
The chairman’s departure leaves a huge power vacuum at the SEC, and who will succeed Gensler is the most crucial question.
According to the proposed bill, after removing the position of Chairman Gary Gensler, the commission will be restructured, and the chairman’s rights will be distributed to other commissioners. The formulation, execution, and investigation of all rules will be led by these six commissioners, with a term of six years. At the same time, an executive director position will be established to oversee daily operations. In addition, to prevent one party from controlling the SEC, no party can have more than three committee seats, and a structure similar to the Federal Election Commission (FEC) will be implemented.
There will also be a sixth commissioner and an executive director to oversee daily operations, while all powers to formulate, implement, and investigate rules will still belong to the commissioners.
The proposed restructuring aims to prevent one party from having more than three committee seats, thus protecting the U.S. capital market from potential political agendas.
This bill was introduced as early as June this year, and U.S. Congressman Warren Davidson posted on Twitter that the “SEC Stability Act” has been formally submitted, requesting a restructuring of the SEC and the dismissal of its chairman, Gary Gensler. The bill was also supported by another member of Congress, Tom Emmer.
Warren Davidson publicly stated, “The U.S. capital market must be protected from the influence of tyranny, including the current chairman. The purpose of the legislation is to address current abuses of power and ensure protective measures that align with the best interests of the market in the coming years. Now is the time for real reform and the dismissal of Gary Gensler as SEC chairman.” The tweet received nearly 4 million views, 44,000 likes, and 16,000 retweets.
When the bill was introduced, Tom Emmer explained that “U.S. investors and industries should be subject to clear and consistent supervision, not political games.” The two lawmakers unanimously believe that Gensler has exercised his power excessively, which is stifling innovation in the United States.
In addition to Emmer and Davidson, there are countless individuals who have contributed to and promoted crypto regulation. It is because of their unwavering support that one day we may usher in a spring of regulation, no longer enduring years of litigation, and “forced settlements,” but flourishing cryptocurrencies under legal regulation.
As the Bitcoin spot ETF progresses, Gensler’s attitude towards crypto regulation has been changing.
In November, Cathie Wood of ARK Invest hinted in a CNBC interview that Gary Gensler’s attitude towards ETFs may depend on his political ambitions. He suggested that people “speculate” Gensler wants to be the U.S. Treasury Secretary, a position that requires a “strong focus on the U.S. dollar,” which to some extent hinders the approval of the Bitcoin spot ETF.
As December progresses, Gensler’s statements have shown signs of loosening. In mid-December, when asked if the SEC might soon take action on the pending Bitcoin spot ETF applications, Gensler responded with silence—neither confirming nor denying—indicating a change in his previous stance.
Speaking at the Health Market Association conference, Gensler stated that he would not “pre-judge” the matter. He previously referred to the SEC’s review process as a “time-tested process.”
In the middle and late December, Gensler once again stated that the SEC’s “new review” of the Bitcoin spot ETF applications took into account recent court rulings.
“In the past, we rejected many such applications, but the District of Columbia Court of Appeals has expressed its opinion on this matter,” said Gary Gensler in a CNBC interview on Thursday. “Therefore, based on these court rulings, we are conducting a new review.”
According to SEC official John Reed Stark, approving the Bitcoin spot ETF is likely to be a political legacy of Gary Gensler.
With Gensler’s position becoming increasingly vulnerable, this “crypto enemy” who has been fighting against the crypto world for years may have to “take action” in the final moments.
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Tags:
Gary Gensler
SEC
SEC Chairman
Tom Emmer
Warren Davidson
Impeachment