đź“° Table Of Contents
United States Securities and Exchange Commission (SEC) Chair Under Scrutiny
United States Securities and Exchange Commission (SEC) Chair Gary Gensler is facing increased scrutiny over his handling of the federal agency following a Monday hearing held by the U.S. House Committee on Financial Services (HCFS). The committee delved into potential SEC reform, exploring concerns about the agency’s recent actions.
Representative French Hill Lambasts Gensler’s Leadership, Calls for SEC Reform
According to the committee’s memorandum, Gensler’s direction has sparked “significant concerns” amongst its members, citing the commission’s “rapid push to propose and finalize numerous new rules” and insufficient comment periods that would otherwise allow stakeholders to provide impactful feedback on proposed rules in connection with the Administrative Procedures Act.
HCFS Vice Chairman Representative French Hill (R-LA) chastised the commission’s regulation-by-enforcement approach, emphasizing its negative financial implications for the American people and the urgent need for SEC reform.
“As a result of that gross abuse of power, the commission is required to pay the legal fees – which means that our constituents’ tax dollars are now being used to pay for the SEC’s overreach and failure,” Hill stated.
“Whether it’s refusing to comply with the Administrative Procedures Act or not, or providing clear rules of the road for the digital asset ecosystem, it’s clear that the SEC under Gary Gensler blatantly and repeatedly oversteps its statutory authority,” he added.
David Burton Criticizes SEC’s Focus
Meanwhile, David Burton, a Senior Fellow in Economic Policy at The Heritage Foundation, criticized the federal agency’s focus on social justice initiatives, including climate disclosures and diversity, equity, and inclusion over “serious issues” related to its “core mission.”
“The SEC is managed exceedingly poorly and has been for quite some time,” said Burton. “Its organizational structure is unwieldy and inconsistent with sound management practices. It is among the most management-heavy and bureaucratic agencies in government.”
Representative Waters Defends SEC
HCFS Ranking Member Maxine Waters pushed back against the committee’s concerns, arguing for the importance of SEC reform to provide increased transparency in unregulated private securities markets. She also advocated for more comprehensive climate disclosures.
“For the record, our SEC is our cop on the block, protecting investors,” Waters stated.
SEC’s Regulatory Approach Criticized
Monday’s House Committee of Financial Services hearing comes amidst a wave of criticism for Gensler’s leadership of the SEC, particularly following Judge Robert Shelby’s condemnation of the commission’s handling of the botched case against Debt Box, calling it a “gross abuse of power.”
Shelby has since proceeded to dismiss the SEC’s litigation against the cryptocurrency firm without prejudice.