Could the SEC chairman be ousted by the SEC stabilization act?

Among some Republican lawmakers who have publicly criticized SEC Chairman Gary Gensler's leadership of the federal securities regulator is Congressman Warren Davidson, who recently proposed legislation to remove Gensler from his position.

Within two months, Davidson filed the SEC Stability Act, sharing the news on Twitter on June 12.

Davidson said in a statement: "American capital markets must be free from tyrant chairmen, including the current one, which is why I am introducing legislation to address the continued abuse of power. We need to ensure the best possible outcomes for the markets in the years to come. The best interests can be protected, and now is the time for real reform and the firing of Gary Gensler as SEC Chairman."

Davidson also announced that Republican Rep. Tom Emmer of Minnesota had chosen to join him.

“U.S. investors and industry deserve clear and consistent regulation, not political games,” Emmer said. “The SEC Stability Act would make reasonable changes** to ensure the SEC’s priority is protecting them.” responsible investors, not its freewheeling chairman**.”

It wasn't just Republican politicians who expressed dissatisfaction with Gensler's work, but Democratic presidential candidate Robert F. Kennedy Jr., too.

Kennedy said last month that “the SEC’s job right now is not to protect the American people, it’s to protect the banks.” The presidential candidate also advocated for a pro-Crypto leader in the SEC.

Davidson's proposal seeks to establish a new structure in which responsibility for setting current policy would shift from the SEC chairman to six SEC commissioners who would be involved in rulemaking, enforcement and investigations.

Patrick McHenry, chairman of the U.S. House Financial Services Committee, also recently criticized Gensler.

At a supervisory hearing on April 18, McHenry asked Gensler a question about whether ETH is a security, but at the time, Gensler did not give a clear answer.