SEC Chief Gary Gensler Faces Scrutiny From The GOP

July 22, 2022 11:13 am

It seems that the SEC is now facing additional pressure from the GOP now as many Republican accuse Gary Gensler’s agenda regarding crypto regulation far exceed the SEC’s authority.

As a result, Republicans are now laying the groundwork on how they will oppose the agenda once they do take power in Congress again.

Therefore, once the GOP has control of Congress, many investors will need to closely monitor the situation as it is expected that there may be significant reforms on the role of the SEC and especially its role in crypto.

Potential things that might happen are budget cuts which would go against what the SEC wants right now which is increasing the size of its staff.

Gensler will likely have to appear before Congress for multiple committee hearings when this happens.

FoxBusiness reports:

Gensler’s response did not include specific answers. Instead, he offered to brief committee members about the climate plan, GOP officials tell Fox Business.

A spokesman for Gensler had no comment.

In the latest salvo, Toomey’s new letter called Gensler’s response “wholly inadequate and unacceptable,” while pointing out that a member of the public who submitted a Freedom of Information Act request would be entitled to more records than what the SEC has given the Senate committee overseeing the commission.

Toomey also said the GOP believes a recent ruling by the Supreme Court limits the authority of federal agencies, like the SEC, to enact policies Gensler is pursuing. That could mean the new SEC climate disclosure proposal is unconstitutional.

It seems a recurring point that continually comes up is the lack of clarity in the regulations and guidelines.

As a result, this may have been leading to the SEC assuming authority over domains that it should not have and this includes its actions even on things outside of crypto.

So far, SEC Chairman Gary Gensler is now expected to appear before the Senate Banking Committee for an annual oversight this fall where these topics will likely be discussed.

This is not the first time that Gensler has received pressure from law makers as there has been previous letters inquiring about the SEC’s actions earlier in the year.

FoxBusiness concludes:

“The GOP smells blood in the water, and this treatment of Gensler is merely foreshadowing of what’s to come,” said one former SEC official who spoke on condition of anonymity. “They will surely pull a Mary Schapiro on Gensler if they win the majority.”

Republicans routinely targeted Mary Schapiro during extensive hearings over her agenda as President Obama’s SEC Chair after the House turned red in 2010 through the end of her tenure in 2012.

Chairman Gensler is scheduled to appear in front of the Senate Banking Committee for an annual oversight hearing this fall.

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