US House Republicans have sent a letter to SEC Chair Gary Gensler, accusing him of politically motivated hiring for senior positions at the agency.
Republican Accusations
In a letter signed by Republican lawmakers Jim Jordan, Patrick McHenry, and James Comer, it is claimed that the SEC is hiring individuals from left-leaning organizations for senior roles. They argue that this may violate federal law.
Relevant Correspondence
The lawmakers cited email correspondence made public in an SEC rulemaking comment, suggesting that Gary Gensler's decision to hire Dr. Haoxiang Zhu as director of trading and markets was influenced by Zhu's political affiliation. The letter states that in May 2021 emails, Zhu told Gensler he was 'in the right place on the political spectrum' and was hired six months later.
SEC Requirements
Gensler has been asked to produce all documents and communications related to SEC hiring decisions from April 17, 2021, onward. Additionally, he is required to provide any information on the SEC’s assessment of applicants' political affiliations. The deadline for this submission is September 24.
The letter from Republicans raises important questions about SEC's political neutrality and potential violations of federal law. Gary Gensler's response could significantly impact the future operations of the agency.
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