Washington, D.C. — Today, House Majority Whip Tom Emmer (MN-06) joined the introduction of Rep. Warren Davidson's (OH-08) SEC Stabilization Act, fulfilling the promise to restructure the Securities and Exchange Commission and remove Gary Gensler as Chair of the SEC. This legislation takes corrective action to remove Chairman Gensler following his long series of abuses that have been permitted under the current SEC structure.
“American investors and industry deserve clear and consistent oversight, not political gamesmanship. 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,” said Emmer.
“U.S. capital markets must be protected from a tyrannical Chairman, including the current one,” said Rep. Warren Davidson. “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.”
- Chair Gensler’s tenure has highlighted a fundamental flaw in the SEC’s structure. Under current law, the SEC Chair retains a concerning level of discretion which leaves the other four commissioner positions effectively redundant.
- The SEC Stabilization Act adjusts the commission to include an additional sixth commissioner, while also creating an Executive Director who oversees the agency’s day-to-day operations. All rulemaking, enforcement, and investigation authority would remain with the commissioners, who are subject to staggered six-year terms.
- Under the SEC Stabilization Act, a single political party would never hold more than three commissioner seats at any given time, thus protecting U.S. capital markets from any future destabilizing political agenda.
- The ensuing stability would also force commissioners to work together prior to approving any significant actions under the SEC’s purview. This would implement a similar structure that is currently in place at the Federal Election Commission.