Ohio representative wants SEC chairman removed

Calling Security and Exchange Chairman Gary Gensler a tyrant, U.S. Rep. Warren Davidson introduced legislation to remove him from the position and restructure the commission.

Davidson, R-Ohio, and House Majority Whip Tom Emmer, R-Minnestoa, say the SEC Stabilization Act will take corrective action to remove Gensler after what they call a long series of abuses that have occurred under the current SEC structure.

“U.S. capital markets must be protected from a tyrannical chairman, including the current one,” Davidson said. “That’s why I’m introducing legislation to fix the ongoing abuse of power and ensure protection that is in the best interest of the market for years to come. It’s time for real reform and to fire Gary Gensler as chair of the SEC.”

Davidson outlined allegations that ranged from creating two or more rules proposals a month to short comment periods and high staff turnover at a government hearing in April.

The act would add a sixth commissioner and create an executive director to oversee the agency’s day-to-day operations. The commissioners, who have staggered six-year terms, would retain rulemaking, enforcement and investigation authority.

Also, neither political party would hold more than three seats on the commission at any one time.

“American investors and industry deserve clear and consistent oversight, not political gamesmanship," Emmer said. "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. Thank you, Representative Davidson, for leading this important effort to restore sanity at the SEC."