Gary Gensler. Source: Bloomberg
US Representative Warren Davidson continues to push for Gary Gensler’s removal as the chairman of the Securities and Exchange Commission (SEC) following Grayscale’s recent win in court against the agency.
Industry stakeholders and the broader crypto community believe Gensler and the SEC’s regulation by enforcement approach towards the crypto industry caused more harm than good to retail investors.
Rep. Warren Davidson continues to pan the leadership of the SEC in relation to crypto, stating that the court ruling in favor of Grayscale further proves that Gensler’s actions are “arbitrary and capricious,” citing words from the ruling.
As previously reported by CryptoPotato, Grayscale won its lawsuit against the SEC in court, which granted the firm’s petition for the Commission to review its application to convert the Grayscale Bitcoin Trust into a spot Bitcoin exchange-traded fund (ETF).
In April, Davidson, the politician, said he would introduce legislation to remove Gensler as SEC chair and replace the chairmanship role with that of an executive director as a way “to correct a long series of abuses.”
The Chairman of the US House Committee on Financial Services, Patrick McHenry of the Republican party, also reacted to Grayscale’s win, saying:
“SEC Chair Gary Gensler’s crusade against the digital asset ecosystem is falling apart under scrutiny from the courts. This is yet another example of why a comprehensive regulatory framework, like the FIT for the 21st Century Act, must be made law.”
McHenry, who also earlier commented on Gensler’s treatment of spot Bitcoin ETFs, noted that the only reason the SEC Chair would oppose such a product is “if he wants to kill crypto in the U.S. altogether.”
Grayscale’s win, meanwhile, does not automatically mean that the SEC will approve spot Bitcoin ETF application, which the Commission has consistently rejected over the years. However, there is hope that with the latest development, there could be a chance to have a spot Bitcoin ETF in the United States.
Apart from Grayscale, the SEC also recently lost to Ripple, which was accused by the agency of carrying out unregistered securities sales involving XRP. The legal battle, which has been ongoing for three years, saw a US judge rule that XRP was not a security if sold in secondary markets.