Rep. Warren Davidson Wants Gary Gensler Fired After Grayscale Triumphs Over SEC In The Courtroom

Rep. Warren Davidson (R-Ohio) on Wednesday took a jab at the head of the Securities and Exchange Commission (SEC), Gary Gensler, for his actions against the cryptocurrency industry. 

What Happened: Davidson said Gensler's actions as "arbitrary and capricious," accompanying his statement with the hashtag #FireGaryGensler. The Ohio representative quoted the Grayscale ruling in the post, which in turn alluded to the SEC's failure to explain the differing treatment of similar products in denying the Barry Silbert-founded digital asset management company's proposal.

The U.S. Court of Appeals for the D.C. Circuit recently ruled in favor of Grayscale in a lawsuit against the SEC. The lawsuit challenged the SEC’s rejection of Grayscale’s application to convert the Grayscale Bitcoin Trust into an exchange-traded fund (ETF). 

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Why It Matters: If a spot bitcoin ETF is approved, it would enable investors to trade bitcoin on a traditional stock exchange, with the cryptocurrency held by a brokerage. This would provide a pathway for investors to gain exposure to Bitcoin without the need to directly own the coin. 

The news of the court ruling had a notable impact on the crypto market, with Bitcoin (CRYPTO: BTC), Ethereum (CRYPTO: ETH), and other altcoins experiencing a surge. 

Coinbase Global Inc (NASDAQ:COIN), which is listed as a custodian partner in multiple spot bitcoin ETF applications, saw its shares rise by over 14% following the court’s decision.

It’s worth noting that Congressman Davidson had previously called for Gary Gensler’s removal through his “Stabilization Act” in June. The proposed bill aimed to restructure the SEC into a more democratic system rather than being led solely by a “tyrannical chairman.”

Will The SEC’s Gary Gensler Soften Its Stance Towards Crypto Industry? Ask industry experts directly at the Benzinga’s Future of Digital Assets event happening in NYC on Nov. 14, 2023. Be a part of the discussions where you won’t just be a passive spectator. Don’t let this chance slip away – secure early bird discounted tickets now!

Photo: Created with an image from Shutterstock and Third Way Think Tank on Flickr

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