- The SEC will face the Congress
- Gensler’s enforcement actions have been called out
- Impact on 2024 Elections
The Securities and Exchange Commission (SEC) is gearing up for a significant event: all five commissioners, including Chair Gary Gensler, will testify before Congress for the first time since 2019. This comes amidst an investigation into Gensler's alleged political bias.
The SEC will face the Congress
Eleanor Terrett of Fox Business reported that the five-member Securities and Exchange Commission (SEC) will testify before the US House Committee on Financial Services next Tuesday. Reportedly, this is the first time since 2019 that the full commission and the chair will testify together. SEC Chairman Gary Gensler will appear before the Senate on September 25.
Gensler’s enforcement actions have been called out
The hearing comes at a time when Gensler is struggling to maintain his leadership of the securities regulator. Last week, Gensler was investigated by Republican lawmakers—Jim Jordan, Patrick McHenry, and James Comer—over allegations of political favoritism. The investigation will check if Gensler or the SEC has been favoring certain political affiliations for key positions within the agency that violate the Civil Service Reform Act of 1978. Lawmakers involved—Jordan, McHenry, and Comer—are influential figures in Republican circles, and they are leading the charge to scrutinize whether Gensler has violated any ethical standards by engaging in potentially biased or politically motivated hiring decisions.
Impact on 2024 Elections
Meanwhile, the result of the 2024 US Elections also becomes crucial for Gensler. A Bloomberg report alleges that donors aligned with Vice President Kamala Harris are privately pushing for the removal of SEC Chair Gary Gensler. The crypto community has publicly expressed frustrations with Gensler’s enforcement actions.
The SEC's hearing before Congress promises to be a significant event in light of the current political and regulatory tensions. The criticisms aimed at Gary Gensler could have long-term implications both for him personally and for the future of digital asset regulation in the US.
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