American Congressman Warren Davidson continues to advocate for the removal of Gary Gensler from his position as Chairman of the Securities and Exchange Commission (SEC) following Grayscale’s recent court victory against the agency.
Stakeholders in the industry and the broader crypto community believe that Gensler and the SEC’s regulatory enforcement approach towards the crypto industry has caused more harm than good for small investors.
Davidson Reflects on Gensler’s Ouster
Representative Warren Davidson continues to criticize the SEC’s leadership regarding crypto, stating that the court ruling in favor of Grayscale further proves that Gensler’s actions are ‘arbitrary and capricious,’ referencing words from the ruling.
Grayscale won its lawsuit against the SEC in court, which approved the company’s request for the Commission to reconsider its application to convert the Grayscale Bitcoin Trust into a spot bitcoin ETF.
In April, Davidson stated that he would introduce legislation to remove Gensler from his position as SEC Chairman and replace the role of Chairman with that of Chief Executive Officer as a way of ‘correcting a long history of abuses.’
The Chairman of the House Financial Services Committee, Patrick McHenry, also reacted to Grayscale’s victory.
– The crusade of SEC Chairman Gary Gensler against the digital asset ecosystem is collapsing under the scrutiny of the courts. This is yet another example of why a comprehensive regulatory framework must be enacted by law – he said.
McHenry, who has also previously commented on Gensler’s handling of spot bitcoin ETFs, emphasized that the only reason the SEC Chairman would oppose such a product is that he wants to ‘completely kill crypto’ in the U.S.
Another Loss for the SEC
On the other hand, Grayscale’s victory does not automatically mean that the SEC will approve the ETF, which the Commission has persistently rejected over the years. However, there is hope that with the latest developments, there may be a chance for the sought-after financial product to be approved in the United States.
In addition to Grayscale, the SEC recently also lost to Ripple, which the agency accused of unregistered securities sales involving the XRP token. In a legal battle that has lasted three years, a U.S. judge ruled that XRP is not a security when sold on secondary markets.
