House Majority Whip Tom Emmer and Representative Warren Davidson have joined forces to introduce the SEC Stabilization Act, a bill aimed at restructuring the SEC and ousting Gary Gensler as its Chair. The legislation addresses concerns regarding Gensler’s alleged abuses and restores accountability and investor protection within the SEC.
Provisions of the Act
The SEC’s current structure, highlighted during Gensler’s tenure, has revealed a fundamental flaw. The SEC Chair wields an alarming level of discretion, rendering the other four commissioner positions effectively redundant.
The SEC Stabilization Act aims to rectify this by adding a sixth commissioner and establishing an Executive Director responsible for day-to-day operations. Rulemaking, enforcement, and investigation authority would remain with the commissioners, serving staggered six-year terms.
To protect U.S. capital markets from potentially destabilizing political agendas, the SEC Stabilization Act ensures that no single political party can simultaneously hold more than three commissioner seats.
This proposed change would foster stability and compel commissioners to collaborate before approving significant actions under the SEC’s purview. The envisioned structure aligns with the current framework at the Federal Election Commission.
One of the key provisions of the SEC Stabilization Act is the removal of Gary Gensler as SEC Chair. Rep. Warren Davidson previously announced his intention to introduce the bill and has found support from Rep. Tom Emmer, who co-authored it.
Alongside Gensler’s removal, the legislation redistributes power between the SEC Chair and commissioners. Additionally, it establishes an executive director position and prohibits any party from holding a majority on the commission.
Conclusion
The proposed SEC Stabilization Act seeks to reshape the SEC’s structure, enhance collaboration among commissioners, and remove Gary Gensler from his position as Chair. By doing so, the legislation aims to promote investor protection, restore accountability, and ensure that the SEC focuses on serving the best interests of American investors and the industry at large.
