SEC Veterans Are Quitting The SEC Under Gary Gensler’s Leadership

June 1, 2022 10:42 pm

Internal SEC sources are indicating that over a dozen staff attorneys have decided to quit the SEC ever since Gary Gensler was appointed to be the SEC chair last year.

Among those who have quit include three senior officials that have nearly 50 years of experience working at the SEC which says something about Gensler’s leadership.

This amount of turnover has never been experienced before at the agency as many have worked in the agency for an extremely long time as SEC was known for attracting top talent.

However, it seems that this is no longer the case as it is no longer a top choice for applicants and the loss of so much experience will likely hamper the SEC’s enforcement efforts.

FoxBusiness reports:

While SEC officials leverage their knowledge of regulation and seek legal work in the private sector, the agency usually holds a solid retention rate and is able to keep attracting talented people — something that appears to be changing under Gensler.

“There is always some turnover with a change in administrations but the loss of so much experience in such a short time is unusual and bound to hamper the agency’s enforcement efforts at a time when Gensler wants to be seen as tough,” an SEC enforcement veteran tells FOX Business.

The problem with working for Gensler, multiple SEC sources tell Fox Business, is both style and substance.

People at the SEC are complaining about his expansive agenda — pushing the commission into new areas of enforcement such as crypto regulation and mandating new company disclosures on issues like the environment. That, combined with his brusque management style, has created a toxic work environment at the SEC, these people say.

The SEC has been criticized by the crypto community for its regulatory actions which have been considered to be holding back the growth of the crypto industry in the US.

Now, it appears that even the SEC’s own employees can no longer stand the toxic work environment that has been created.

As a result, Gensler is now facing pressure from top agency officials and SEC union now regarding work policies as well as pressure from Congress regarding the agency’s recent enforcement actions regarding crypto.

CoinQuora.com reports:

When Gensler was appointed as US Securities and Exchange Commission (SEC) chairperson last year, he was quickly dubbed the “Tyrant of Crypto” on Twitter by critics, who claim that he is aggressively anti-crypto.

SEC, the union representing all of the agency’s non-management employees, has put pressure on Gensler as well as the agency’s top officials. Gensler’s edict requiring them to use or lose their paid holidays is at the heart of the controversy.

According to Fox Business, staff attorneys in SEC’s Division of Enforcement have quit under Gensler, who Crypto Twitter now calls “just another train wreck under the Biden administration” leadership.

SEC officials Kristina Littman, Jennifer Leete, and Adam Aderton have all recently left the agency, with a combined total of nearly 50 years of service at the agency.

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