The American Securities Association (ASA) has demanded that SEC Chairman Gary Gensler resign immediately. ASA President and CEO Chris Iacovella said this change highlights the need for new direction in managing the country’s regulatory environment.
Reasons for Resignation Request
The ASA says Gensler’s tightening of regulations on cryptocurrencies, ESG standards and private equity has undermined investor confidence. Iacovella stated that Gensler’s excessive regulatory practices hinder innovation and put undue pressure on small businesses.
Gensler’s term as President was extremely painful for US-based cryptocurrency companies. Even hours before the election results were known, Gensler was sending out Wells Notices for the latest crypto cases. This explains the hatred that cryptocurrency investors have accumulated towards Gensler over the years.
Reactions to SEC’s Regulatory Approach
The ASA’s request reflects growing criticism that the SEC is failing to ensure market efficiency and investor protection. Critics argue that the SEC under Gensler’s leadership has created uncertainty and hindered market efficiency.
“People voted to take this country in a new direction, and Mayor Gensler should respect that outcome,” – Chris Iacovella
According to FOX journalist Eleanor Terrett, ASA CEO Chris Iacovella stated that SEC Chairman Gensler’s resignation was necessary to restore trust in the SEC.
ASA’s request reinforces views that reforms undertaken under the SEC’s stewardship are not in line with the greater interests of market actors and investors. ASA wants the SEC to focus on the practical needs of Americans and businesses.
Gensler’s resignation is considered as part of the demand for change that comes with the election of a new president in the United States. Gensler is expected to resign in December or January, according to a 10X Research report.
In the event of former President Donald Trump’s return, SEC leadership is expected to be restructured with more crypto- and business-friendly policies. Evaluations indicate that the new president will introduce more flexible regulations in the SEC.
The SEC’s future policies will focus on supporting economic stability and increasing investor confidence. The ASA has sought to impeach current President Gensler, and months ago Trump said one of his first acts would be to fire Gensler.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that crypto currencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
