A new bill is being introduced to fire SEC Chairman Gary Gensler.
Rep. Warren Davidson, R-Ohio, and House Majority Whip Tom Emmer, R-Minn., introduced the SEC Stabilization Act that would restructure the SEC and remove Chairman Gary Gensler from his post, per Fox.
The GOP lawmakers point to what they say is Gensler’s “long series of abuses that have been permitted 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,” he continued.
“It’s time for real reform and to fire Gary Gensler as Chair of the SEC.”
“American investors and industry deserve clear and consistent oversight, not political gamesmanship,” Emmer said in the release.
“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,” Emmer added.
Davidson’s and Emmer’s bill would remove Gensler from his position leading the SEC and restructure the commission to redistribute power from the chair to other commissioners, add a sixth commissioner to the body, and create an executive director position to oversee day-to-day operations.
Unfortunately, Commissioners (including Hester) would still have rulemaking, investigative and enforcement authority and would be subjected to staggered six-year terms.
Dark Pool Trading Has Risen Under Gensler’s Watch
Dark pool trading has risen substantially since Gary Gensler was appointed Chair of the Securities and Exchange Commission (SEC) in April of 2021 by President Joe Biden.
Gary Gensler announced exclusively on Bloomberg that 90-95% of retail orders don’t go through the lit exchange.
The SEC Commissioner says these orders are rerouted to dark pools rather than the NYSE.
What are dark pools?
Dark pools are privately organized platforms, also known to be an alternative trading system accessible to only institutions.
SEC Chairman and Commissioner Gary Gensler says payment for order flow is partly the reason why orders aren’t processed on the lit exchange.
He says retail orders go to wholesalers on an order-by-order competition.
Citadel’s Ken Griffin has praised PFOF stating it’s good for retail investors; however, in 2004 Citadel stated payment for order flow “creates conflicts of interest and should be banned”, according to an SEC file.
PFOF allows market makers to process retails orders in the ‘dark markets’, or dark pools, per SEC Chairman Gary Gensler.
Banning PFOF is one thing but what about retail demand that has been masked by dark pools?
The SEC actually has the power to ban dark pool trading.
Why dark pool trading has risen since Gary Gensler took office is something the retail community is trying to comprehend.
Will SEC Chair Gary Gensler be removed from office? Leave your thoughts in the comment section below.
Also Read: Gary Gensler is Now Being Accused of Market Manipulation
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At this point I dont trust the govt to do what is right
Don’t you think its interesting that now the SEC is finally starting to do something after 2.5 years that congress suddenly want to get rid of him? Led by a guy who voted against better market transparency? Stinks if you ask me. They just want greater control.
Dark pools could be a huge money laundering scheme.
I hope they do fire the SOB, I just hope not to much damage has already taken place and that retail can recoup some of the funds stolen with his blessing IMHO
Leave your thoughts below.